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:

Philanthropists

Individuals who seek to promote the welfare of others, especially by the generous donation of money to good causes.

Private Equity Creation

The process of private investors injecting capital into companies that are not publicly traded on a stock exchange.

Linear Process

A sequential process that follows a straight line from initiation to completion without looping back or skipping steps.

Long-Term Perspective

An approach to planning and decision-making that considers impacts and outcomes over an extended period, rather than focusing on short-term results.