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One Way for an Investor to Protect Themselves When Selling

Question 83

Multiple Choice

One way for an investor to protect themselves when selling 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.

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