n NISM Certifications
VII NISM Series VII
Medium

Short selling is:

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Buying shares at a higher price

  2. Selling shares not owned, expecting price fall

    Correct answer

  3. C

    Buying shares at a lower price

  4. D

    Selling shares at market price

Why this is the answer

Traders borrow shares to sell them, aiming to buy back later at a lower price to profit from the decline.

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