What Is the Meaning of "Short Sell

question 41

Multiple Choice

What is the meaning of "short sell?"

• A) Buy shares from a brokerage firm and enter into a forward transaction to sell the shares at today's price on a future date.
• B) Sell the shares at today's price to an investor and enter into an option agreement to buy the shares back in the near future.
• C) Buy shares from one brokerage firm and sell the shares to another brokerage firm with a view to make quick money.
• D) Borrow shares from a brokerage and sell the shares at today's price with the intention to repay the borrowed stock they sold at some future time when the stock is trading for a lower price.

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Definitions:

Indexed Annuity

A type of annuity that earns returns on contributions based on a specified equity-based index.

Compounded Quarterly

A method of calculating interest where the interest is added to the principal four times a year.

End of Quarter Payments

Payments made at the conclusion of each quarter, often related to financial agreements or obligations.

Lump Amount

A single large sum payment or investment, as opposed to smaller, regular payments or investments.