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    Business
  3. Study Set
    Money Banking and Financial Markets
  4. Exam
    Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
  5. Question
    If a Market Participant Believes That a Stock Price Is
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If a Market Participant Believes That a Stock Price Is

Question 44

Question 44

Multiple Choice

If a market participant believes that a stock price is irrationally high,they may try to borrow stock from brokers to sell in the market and then make a profit by buying the stock back again after the stock falls in price. This practice is called


A) short selling.
B) double dealing.
C) undermining.
D) long marketing.

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