Which of the Following Are Characteristics of Short Selling

question 67

Multiple Choice

Which of the following are characteristics of short selling?
I. borrowing shares of stock from a brokerage firm or other investors
II. selling shares of stock you do not own
III. betting the stock price will increase
IV. limiting losses per share to the price at which the stock was sold

• A) I and II only
• B) III and IV only
• C) I, II and IV only
• D) I, II, III only

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Definitions:

US Companies

Corporations or businesses that are registered, operate, or are headquartered in the United States.

Billions

A numerical value representing one thousand million (1,000,000,000) in the short scale numbering system, often used in the context of large quantities, such as population or financial transactions.

Risk Limitation

A strategy to reduce or control exposure to threats by implementing measures to limit potential damage.

Implementing Controls

The process of establishing and applying mechanisms to manage or regulate actions within an organization or system.