If an Investor Feels the Price of a Stock Will

question 4

Multiple Choice

If an investor feels the price of a stock will decline in the future, which trade should the investor undertake?

• A) market order
• B) buy on margin
• C) limit order
• D) short sale

Understand the concept of externalities and their impact on market efficiency.

Recognize the role of government intervention in correcting market failures due to externalities.

Distinguish between positive and negative externalities and their effects on social welfare.

Comprehend the purpose and impact of the patent system on technological advancements.