An investor who expects to purchase stock at a later date would use a short hedge to protect against stock price movements.

Name: An investor who expects to purchase stock at a later date would use a short hedge to protect against stock price movements.
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Question

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A short hedge is used by someone who already owns the stock and wants to protect against a decrease in the stock price. An investor looking to purchase stock at a later date would use a long hedge to protect against price increases.

An Investor Who Expects to Purchase Stock at a Later