When an Investor Borrows Part of the Investment Cost It

question 12

Multiple Choice

When an investor borrows part of the investment cost it is known as

• A) A short sale.
• B) A fill or kill order.
• C) A margin transaction.
• D) A limit order.
• E) Going long.

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Definitions:

Earnings Per Share

A financial metric that shows the portion of a company's profit allocated to each outstanding share of common stock.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Market Price

Market price is the current value at which an asset or service can be bought or sold in a marketplace.

Shares Outstanding

Represents the total number of shares of stock that are currently owned by the company's shareholders, including shares held by institutional investors and restricted shares owned by the company’s officers and insiders.