If you believed a stock was going to fall in price,a strategy to profit from the stock decline is known as:

Question

Quizplus · Accepted Answer

Selling short is the correct choice, as it involves borrowing and selling a stock you do not own, hoping to buy it back at a lower price to make a profit. Buying long involves owning the stock and hoping for its price to increase, which would not result in a profit if the stock is expected to fall in price. Similarly, selling long involves selling a stock you own, which would also not result in a profit if the stock is expected to decline.

If You Believed a Stock Was Going to Fall in Price,a