The Purchase of Shares with Cash in the Hope of Earning

question 7

Multiple Choice

The purchase of shares with cash in the hope of earning a capital gain is known as taking a

• A) long, margined position in the share.
• B) long position in the share.
• C) short, margined position in the share.
• D) short position in the share.

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Definitions:

Manufacturing Sector

A segment of the economy dedicated to the production of goods through the processing of raw materials and the use of machinery.

Currency Values

The worth of one form of currency when exchanged for another, often influenced by economic indicators and government policies.

Law Of One Price

Assumption that any given good or service would carry the same price everywhere if allowed free movement across national borders.

Foreign Exchange Rates

The price of one country's currency in terms of another currency, affecting international trade and investment.