Which of the following statements about short selling are correct?(Select all that apply; two of the answers below are correct.) Reference: Short Selling (Investopedia). Short selling is illegal under United States securities laws. An investor should expect to profit from a short sale if the price of the shorted stock declines, and should expect to lose money on a short sale if the price of the shorted stock rises. Investors typically engage in short sales when they expect the price of a security to rise. Short selling occurs when an investor borrows a security they don't own and then sells it to another investor, with the intention of buying it back later. Shares must be borrowed because you cannot sell shares that do not