What phrase might be used to describe the initial transaction a short seller initiates when shorting an equity security?
A) Buy
B) Sell
C) Borrow
D) Covering

Name: What phrase might be used to describe the initial transaction a short seller initiates when shorting an equity security? A) Buy B) Sell C) Borrow D) Covering
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Question

Quizplus · Accepted Answer

The initial transaction a short seller initiates is borrowing the equity security to sell it, hoping to buy it back later at a lower price.

What Phrase Might Be Used to Describe the Initial Transaction