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    Question

    Sale of a security that is not owned by the seller is

    called?
    A Credit Selling Correct Answer Incorrect Answer
    B Short selling Correct Answer Incorrect Answer
    C Borrowed selling Correct Answer Incorrect Answer
    D Net selling Correct Answer Incorrect Answer
    E Leverages selling Correct Answer Incorrect Answer

    Solution

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit.

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