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:

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