Choose the most correct answer - Short selling is more risky than buying...

70.2K

Verified Solution

Question

Finance

Choose the most correct answer - image

Short selling is more risky than buying a stock because: A More retail investors sell stocks, and they are less sophisticated than institutional investors. B The downside risk of selling is unlimited while the downside risk of buying is limited. The collateral that investors post when short selling is bigger than when buying. The broker who lends the stocks to the short seller may demand a higher price

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students