Investors sell a security short when they expect the price of the security to
A)increase substantially.
B)decrease.
C)remain perfectly stable.
D)increase slightly.

Question

Quizplus · Accepted Answer

Investors sell a security short when they believe the price of the security will decrease. When selling short, the investor borrows shares from their broker and sells them at the current price, hoping to buy them back at a lower price in the future and profit from the difference.

Investors Sell a Security Short When They Expect the Price