If a Market Participant Believes That a Stock Price Is

question 44

Multiple Choice

If a market participant believes that a stock price is irrationally high,they may try to borrow stock from brokers to sell in the market and then make a profit by buying the stock back again after the stock falls in price. This practice is called

• A)short selling.
• B)double dealing.
• C)undermining.
• D)long marketing.

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Definitions:

Mass Media

Channels of communication such as television, radio, newspapers, and the internet, used to disseminate information or entertainment to a large audience.

Deviance

Behavior that violates the norms or expectations of a social group or society, which can lead to negative sanctions.

Ownership

The legal right or state of having control over something, such as property, businesses, or intellectual property.

Mass Media

Forms of media, including newspapers, television, radio, and the internet, that reach or influence large numbers of people.