Question

1. True or? False? According to the Explain It! video on short selling?, you take a short position when you sell a security you do not own by borrowing it from your broker.

Answer 1

Short selling involves selling a security you do not own by borrowing it from your broker.

Step-by-step explanation:

The statement in the question is true. In short selling, you take a short position when you sell a security you do not own by borrowing it from your broker. This practice allows investors to profit from the declining price of a security. By borrowing the security and selling it at the current high price, you can later repurchase it at a lower price in the market and return it to your broker, thus making a profit.