Multiple choice general knowledge

What is 'Short Selling' in stock market lingo?

  1. Selling the shares which you do not own

  2. Selling a share after owning it for a short period of time

  3. Selling all the shares in your booty which are not productive

  4. Selling of shares which are quoted for a short period of time
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Short selling means borrowing shares from a broker and selling them with the obligation to buy back later, profiting if the price drops. Option B describes regular selling, while C and D are incorrect descriptions.

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