Which One of the Following Describes a Short Position

question 71

Multiple Choice

Which one of the following describes a short position?

• A)Purchasing a security on margin
• B)Selling a security that you originally purchased on margin
• C)Loaning a security to your broker to cover a margin call
• D)Having less equity than required in your margin account
• E)Selling a security that you do not own

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Definitions:

Domestic Clothing Factories

Factories located within a country's borders that manufacture clothing and apparel for local consumption or export.

Overseas Operations

Business activities or processes conducted in foreign countries outside of a company's home country.

Corporate Tax Relief

Measures or policies designed to reduce the tax burden on corporations, potentially to stimulate investment or economic activity.

Special-Interest Effect

The impact on policy making by interest groups that can result in legislation that benefits a small group at the expense of the general public.