JoeyDVivre

short selling is when you borrow a stock, sell it, and attempt to buy it back at a cheaper price. then you give the stock back to the original holder and pocket the difference.

ie -- you are going to make money when the stock goes down and lose it when the stock goes up. So the answer is A. you would place a stop buy order at $44 so that your maximum loss is $4. (you sold the stock at $40 and then bought it back at $44.)

hope that helps