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Corporate Strategy MCQs

Which of the following describes the practice of of "short selling"?

Selling half of the shares owned in a company whose share-price is falling to reduce losses.

Selling shares owned in other companies to cover a fall in one company's share price.

Selling shares in a company that are not actually owned in the expectation that the price will decrease.

Selling shares in companies whose price has recently risen in order to realize the profits.

Answer

Correct Answer: Selling shares in a company that are not actually owned in the expectation that the price will decrease.

Explanation:

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