A short sale occurs when an investor borrows securities from a broker to be sold and then replaced at a specified future date.

Name: A short sale occurs when an investor borrows securities from a broker to be sold and then replaced at a specified future date.
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In a short sale, an investor borrows shares from a broker and sells them on the open market, planning to buy them back later at a lower price to return to the broker, aiming to profit from a decline in the security's price.

A Short Sale Occurs When an Investor Borrows Securities from a Broker