Question: 41. Big Box Retail Inc. has shown declining sales for the past 10 years. The business model seems to be broken. A significant number of

41. Big Box Retail Inc. has shown declining sales for the past 10 years. The business model seems to be broken. A significant number of hedge funds decide to "short" the stock of Big Box. The stock declines. However, Big Box has a significant amount of real estate on its books that is worth 4 times the market value of the Company. A group of individual investors decide to start buying the stock of Big Box. As a result of this new buying the stock price increases substantially. The hedge funds begin losing money and "cover" the short positions. What is this situation called?

A. Open Position

B. Short against the Box

C. LBO

D. Short Squeeze

E. Hedge

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