Short selling is the sale of a financial product that the seller does not own, with the intention of buying it back later at a lower price and making a profit. This practice involves borrowing the financial product from someone else and selling it in the market, with the expectation of buying it back when the price has fallen.

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Short Selling Is

Question 7

Multiple Choice

Short selling is:

A) the sale of a financial product at a discount to its current market value.
B) the sale of a financial product in small quantities.
C) the sale of a financial product that the seller does not own.
D) the sale of a financial product where the seller agrees to buy it back at a predetermined price.

Correct Answer: