Exhibit 7-5

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

Name: Exhibit 7-5 -If you believed a stock was going to fall in price,a strategy to profit from the stock decline is known as:
Brand: Quizplus
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Question

Exhibit 7-5
 
-If you believed a stock was going to fall in price,a strategy to profit from the stock decline is known as:

Quizplus · Accepted Answer

Selling short is the strategy used to profit from the decline in stock prices. This involves borrowing shares from a broker and selling them with the hope of buying them back at a lower price in the future, thus making a profit on the difference.

Exhibit 7-5 -If You Believed a Stock Was Going to Fall in Going