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:

Motor Vehicle

A self-propelled vehicle used for transporting passengers or goods on land.

Perfection

In legal contexts, this term often pertains to the steps required to protect a secured interest against claims from third parties.

Public Notice

An official announcement made to the public through available ways, including newspapers, official websites, or public bulletin boards.

Attachment

The legal process of seizing property of a defendant in a lawsuit by a creditor prior to obtaining a judgment to secure the fulfillment of a judgment.