Question

Someone who buys stock for less than what it is worth, then borrows the difference in hopes of making a profit is said to be doing what?

a) Undermining laissez-faire economics
b) Engaging in mass production
c) Stock Speculation
d) Purchasing tariffs

Answer 1

The individual is engaging in stock speculation.

Step-by-step explanation:

The individual who buys stock for less than what it is worth, then borrows the difference, is engaging in stock speculation. Stock speculation is a strategy where an investor buys stocks in the hope that their value will increase and they can sell them at a profit.