Juan, an investor, will engage in a short sell when he expects the stock price to _____________ in the future.

Question

Quizplus · Accepted Answer

Juan will engage in a short sell when he expects the stock price to fall in the future. Short selling involves borrowing shares from a broker and selling them with the hope of buying them back at a lower price and profiting from the difference. This strategy is only profitable if the stock price decreases.

Juan, an Investor, Will Engage in a Short Sell When