To take advantage of anticipated stock price decreases,an investor would use ________.

Question

Quizplus · Accepted Answer

To take advantage of anticipated stock price decreases, an investor would use a short sale. This involves borrowing shares from a broker and selling them, with the intention of buying them back at a lower price to return to the broker and pocketing the difference as profit. Market and limit orders do not relate to short selling, and margin credit is a method of borrowing money to invest, which may not be suitable for all investors.

To Take Advantage of Anticipated Stock Price Decreases,an Investor Would