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If an investor is bearish on a share, buying a put is usually better then...

AAFM GLO_CWM_LVL_1 Full Course Access
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If an investor is bearish on a share, buying a put is usually better then selling short because:

A.

The holder’s losses can be no more that the put premium if the share price rises, but the short seller’s losses could be significant in this situation.

B.

The short sale will become worthless after a short period of time put will not become worthless.

C.

The short seller must pay any dividends received on security, the short seller borrowed.

D.

A and C

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