When One Investor Borrows Stock from Another Investor and Then

question 38

Multiple Choice

When one investor borrows stock from another investor and then immediately sells it in the market,but with a promise to replace the stock at some later date,he or she has executed a transaction that is called ____.

• A) Margin trading
• B) Short selling
• C) A hypothecation arrangement
• D) "Going long"
• E) An irregular transaction

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Definitions:

American Value System

A set of beliefs and ideals that are widely held by Americans, including liberty, democracy, individualism, and equality.

1920s

A decade characterized by economic prosperity, cultural flourishing in the West, and significant social changes, often referred to as the "Roaring Twenties."

Change

The process or act of making or becoming different, marking a transition from one state, phase, subject, or place to another.

War Debts

The money owed by several countries as a result of borrowing to finance their involvement in World War I and other conflicts.