Profits will result from a short sale if
1) interest rates rise so security prices rise
2) interest rates rise so security prices fall
3) inflation causes stock prices to rise
4) inflation causes stock prices to fall
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
Correct Answer:
Verified
Q44: If the quote on stock is reduced,
Q45: A market maker
1. sells stock at the
Q48: Securities regulations protect investors by
A)requiring disclosures of
Q50: If a stock is bought on margin,
A)
Q51: The advantages of leaving securities with the
Q52: Investors are insured from brokerage firm losses
Q59: American Depository Receipts represent
A) American stocks traded
Q67: Short selling requires
1. no collateral
2. a margin
Q73: An investor sells 100 shares short at
Q76: Short selling is
A) selling borrowed securities
B) selling
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