Economics · Financial Markets
What does the term 'short selling' refer to in financial markets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Buying shares at a lower price and selling them within the same day
- 2Selling borrowed shares with the expectation that their price will decrease✓
- 3Selling shares directly to a broker without market involvement
- 4Selling shares that are held for a very short period of time
Correct answer
Selling borrowed shares with the expectation that their price will decrease
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