In investment terminology,selling stock that you have borrowed is known as a
A)margin sale.
B)short sale.
C)limit sale.
D)stop-loss sale.
E)none of these.

Question

Quizplus · Accepted Answer

Selling stock that you have borrowed is known as a short sale. It involves borrowing shares from a broker and selling them on the market in the hope that the price will decline, eventually allowing the shares to be bought back at a lower price to return to the broker. The goal is to profit from the difference between the sell price and the buyback price.

In Investment Terminology,selling Stock That You Have Borrowed Is Known