A short seller
A)anticipates that the price of the stock sold short will increase.
B)earns the difference between what he initially paid for the stock versus what he later sell the stock for.
C)makes a profit equal to the difference between the original selling price and the price paid for the stock, after subtracting any dividend payments made.
D)is essentially lending the stock to another investor and will ultimately receive that stock back from that investor.
E)none of the above

Question

Quizplus · Accepted Answer

A short seller profits when the stock price decreases, allowing them to buy back the stock at a lower price than they sold it for, minus any dividends paid.

A Short Seller