What describes the process of an investor expecting a rise in stock prices?

The process of an investor expecting a rise in stock prices is effectively described by purchasing a call option. A call option grants the investor the right, but not the obligation, to buy a specific stock at a predetermined price (known as the strike price) within a certain period. If the investor anticipates that the stock price will increase above the strike price, they can profit by exercising the option and purchasing the stock at a lower price, or by selling the option itself for a gain. This strategy is specifically designed for bullish expectations, where the investor benefits from upward movements in stock prices.

Other strategies listed are focused on different market expectations or mechanics. For instance, short selling involves betting against a stock, margin trading is about borrowing funds to amplify investment potential, and put option purchasing is based on an expectation that stock prices will decline. None of these strategies align with the positive outlook that comes from expecting a rise in stock prices as effectively as call option purchasing does.