One way for an investor to protect themselves when selling a stock short is to
A) not make the sale on margin.
B) buy an offsetting amount of the same shares coincident with the short sale to perfectly hedge the transaction.
C) issue a stop buy limit order at a price somewhere above the short sale price.
D) An investor cannot protect against large losses in a short sale transaction.
Answer: C
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Answer the following statements true (T) or false (F)
1.Import quotas can yield revenue for the domestic government if it auctions import licenses to the highest bidder in a competitive market. 2.To the extent that domestic importing companies organize as a monopoly buyer, and foreign exporting companies behave as competitive sellers, the importing companies capture the revenue effect of a quota. 3.An import quota tends to reduce the overall welfare of the importing nation by an amount equal to the protective effect, consumption effect, and the portion of the revenue effect that is captured by the domestic government. 4.The sugar import quotas of the U.S. government have tended to increase the market price of sugar, thus reducing the costs to the government of maintaining sugar price supports for domestic growers. 5.During periods of growing demand, a tariff more effectively restricts the volume of imports than an equivalent import quota.
The two broad categories of objections are ________, which can never be solved and ________, which can be answered.
A. hopeless objections; true objections B. generic objections; specialized objections C. superficial objections; actual objections D. feigned objections; real objections E. potential objections; actual objections
Scenario 6.1 Use the following to answer the questions. Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Kate has asked several of her friends and family members where they have their cars repaired, since she has experienced a problem starting her car when the weather is cold. Kate has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. Steve, one of Kate's friends, had a very poor experience with Skola's. However, once he complained to them, they fixed the situation and now he prefers their auto repair shop over others. Refer to Scenario 6.1. The change in Steve's
behavior toward Skola's Auto Repair, caused by the company's response to his complaint, is a function of A. perception. B. motivation. C. attitudes. D. learning. E. influence.
Identify which of the following statements is true.
A) If a stock redemption is made by an estate following the decedent's death, the redemption may receive capital gains treatment only if the money is actually used to pay the death taxes. B) Attribution rules do not apply to qualified Sec. 303 stock redemptions. C) The value of decedent's stock satisfies the Sec. 303 minimum if it is less than 35% of the decedent's gross estate. D) All of the above are false.