If an Investor Sells a Stock Short, That Individual Reduces

question 2

Multiple Choice

If an investor sells a stock short, that individual reduces the risk of loss by

• A)buying a put
• B)buying a call
• C)entering a limit order to sell the stock if its price declines
• D)increasing the collateral with the broker

---

Definitions:

Endomembrane System

Multifunctional network of membrane-enclosed organelles (endoplasmic reticulum, Golgi bodies, vesicles).

Cytoskeleton

Network of microtubules, microfilaments, and intermediate filaments that support, organize, and move eukaryotic cells and their internal structures.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the passage of substances in and out of the cell.

Mitochondria

Organelles within eukaryotic cells that produce energy through the process of cellular respiration.