Ben is selling stock that he borrowed from his broker and planned to replace at a later date. Which of the following strategies is he using?

Question

Quizplus · Accepted Answer

Selling short is the strategy of selling borrowed stock in the hopes that the price will decrease, allowing the borrower to buy back the shares at a lower price and return them to the lender, profiting from the difference. This is the only option listed that aligns with Ben's actions of borrowing and selling stock to replace at a later date.

Ben Is Selling Stock That He Borrowed from His Broker