Selling Equities You Don't Own and Buying Them Back to Cover

question 94

Multiple Choice

Selling equities you don't own and buying them back to cover the sale is

• A)short selling in anticipation of a bear market in that security
• B)going long.
• C)discounting the market averages.
• D)a very safe investment activity.
• E)considered wise in a bull market.

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Definitions:

Optic Chiasma

The X-shaped structure formed by the crossing over of the optic nerves in the brain, which allows visual information from each eye to be processed on both sides of the brain.

Blind Spot

Area in the retina where the axons of the three layers of retinal cells exit the eye to form the optic nerve; insensitive to light.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the high concentration of cones and absence of rods.

Saturation

In color theory, saturation refers to the intensity or purity of a color; in psychology, it can relate to the degree of intensity of a feeling or experience.