The risk of a short sale is that the stock price
A) may decrease over time.
B) will remain the same.
C) may increase over time.
D) none of the above

Question

Quizplus · Accepted Answer

The risk of a short sale is that the stock price may increase over time, which would result in a loss for the short seller. Option A and B are not the best choices as they do not fully address the risk involved in short selling. Option D is not a viable choice as there must be a risk involved in short selling.

The Risk of a Short Sale Is That the Stock