A customer executing a short sale anticipates what market condition?

A customer executing a short sale is anticipating a decrease in the market value of a security. In a short sale, the investor borrows shares of a security and sells them with the intention of buying them back later at a lower price. By selling the shares that they do not own, the investor aims to profit from the difference between the initial sale price and the lower price at which they can later repurchase the shares.

For a short sale to be successful, it is essential for the price of the security to drop. If the price decreases as anticipated, the investor can buy back the shares at this reduced price, return the borrowed shares, and keep the profit made from the initial higher sale price.

Other market conditions, such as an increase or no change in the market value of the security, would not align with the goals of a short sale, as these scenarios could lead to losses for the investor instead of the desired profit. Therefore, the anticipation of a decrease in market value is the fundamental reason behind executing a short sale.