If an Investor Makes a Short Sale of Yahoo! Stock

question 117

Multiple Choice

If an investor makes a short sale of Yahoo! stock and then the price of the stock decreases, the investor

• A) loses money.
• B) must repay the borrowed money.
• C) makes money.
• D) does not make or lose any money.
• E) will sell the stock back.

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Definitions:

Femur

The thigh bone, which is the longest, strongest, and heaviest bone in the human body, extending from the hip to the knee.

Fibula

A long, thin bone located in the lower leg, lateral to the tibia, playing a key role in stabilizing the ankle and supporting lower leg muscles.

Tarsals

A group of seven bones in the foot situated between the lower leg bones and the metatarsals, contributing to foot's structure and movement.

Tibia

The larger and stronger of the two bones in the lower leg, responsible for supporting the majority of the body's weight.