Which of the following does not apply to a short sale?
A) Short selling must be done through a margin account.
B) Short selling is undertaken by investors who believe that the price of the security will increase.
C) Short selling involves borrowing stock from a third party.
D) Short selling must take place in the street name.

Question

Quizplus · Accepted Answer

Short selling is undertaken by investors who believe that the price of the security will decrease, not increase. They aim to sell high and buy back low.

Which of the Following Does Not Apply to a Short