Describe short selling and when this option would be used

What will be an ideal response?


Answer: Most investors buy stock with the anticipation that it will rise in value. However, if you believe that a stock's price is about to drop, you may choose a trading procedure known as short selling, or "going short." With this procedure, you sell stock you borrow from a broker in the hope of buying it back later at a lower price. After you return the borrowed stock to the broker, you keep the price difference. However, selling short can be quite risky because you can lose more than you originally invested.

Business

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Which of the following statements is true of the ethnic composition of the workforce in the United States?

A. The percentage of whites has gradually increased in the past 15 years. B. The percentage of Hispanics has increased in the past 20 years. C. The percentage of African Americans has gradually decreased in the past 15 years. D. The percentage of Asian Americans has decreased in the past 20 years.

Business

Which of the following statements is true when we consider innovation for products in the context of the product life cycle?

a. Innovation may not be of particularly great importance for mature products. b. It is too late to improve profitability of mature products through innovation. c. Innovation is applicable only during the introduction stage of a product’s life cycle. d. Innovation is not required during a product’s growth stage.

Business

A bailee always has a right

a. to possession of the bailed property. b. to use the bailed property. c. to compensation. d. All of the answers are correct.

Business

The Financial Accounting Standards Board (FASB) is the federal regulatory body that governs the sale and listing of securities

Indicate whether the statement is true or false

Business