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Apr 3, 2021

[Answer] In a short sale, an investor thinks the stock will do what in the future?

Step 1 : Introduction to the question "In a short sale, an investor thinks the stock will do what in the future?"



...To pull off a short sale, an investor must have nearly perfect timing. To perform this transaction, a trader borrows stock on margin for a short time and sells it back when the right price is reached, or when the time limit runs out. The advantage? Traders can profit off of the price drop when they buy it back. However, if the prices do not drop as anticipated, the investor can lose a lot of money.




Step 2 : Answer to the question "In a short sale, an investor thinks the stock will do what in the future?"



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