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With reference to the short selling, consider following statements
Select the correct statement.
1 only
2 only
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Short selling allows investors to profit from stocks or other securities when they go down in value. In order to do a short sale, an investor has to borrow the stock or security through their brokerage company from someone who owns it. The investor then sells the stock, retaining the cash proceeds. The short-seller hopes that the price will fall over time, providing an opportunity to buy back the stock at a lower price than the original sale price. Any money left over after buying back the stock is profit to the short-seller. Recently Indian capital market regulator(i.e. SEBI) imposed some curbs on short- selling, starting this week to curb the ongoing volatility and equity sell-off in the stock market. Regulators in a few countries like Spain, South Korea and Italy have banned short selling amid huge volatility and a fall in stock prices. During the global financial crisis of 2008, the US Securities Exchange Commission (SEC) had banned short-selling in financial stocks
By: Shubham Tiwari ProfileResourcesReport error
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