A Short-Seller

question 46

Multiple Choice

A short-seller

• A)anticipates that the price of the stock sold short will increase.
• B)earns the difference between what was initially paid for the stock versus what the stock is later sold for.
• C)makes a profit equal to the difference between the original selling price and the price paid for the stock, after subtracting any dividend payments made.
• D)is essentially lending the stock to another investor and will ultimately receive that stock back from that investor.
• E)None of these are correct.

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Definitions:

Small Requests

A technique where simple, non-burdensome tasks or favors are asked to gradually encourage compliance or build rapport.

Larger Requests

A persuasion technique where a more significant demand or appeal is made, possibly as a part of a strategy to achieve a smaller request later.

Experts

Individuals who possess extensive knowledge or skills in a particular area or field, often as a result of education, experience, or both.

Persuasive

Having the power to convince or influence someone's beliefs, attitudes, or actions through argument, reasoning, or appeal.