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:

Seize and Sell

A legal process where authorities or creditors take and then sell the assets of a debtor to recover owed money.

Water Purifier

A water purifier is a device that removes impurities and contaminants from water, making it safe for drinking and other uses.

Lease Expiry

The end of a lease agreement term, after which the lessee must vacate the property or negotiate a renewal of the lease.

Residential Tenancy

A legal agreement between a landlord and tenant for the rental of a living space, such as a house or apartment.