If a Market Participant Believes That a Stock Price Is

question 44

Multiple Choice

If a market participant believes that a stock price is irrationally high,they may try to borrow stock from brokers to sell in the market and then make a profit by buying the stock back again after the stock falls in price. This practice is called

• A)short selling.
• B)double dealing.
• C)undermining.
• D)long marketing.

Identify the characteristics and purpose of strategic planning.

Understand the roles and attributes of rules, procedures, and policies within an organization.

Appreciate the significance of setting objectives as a core aspect of organizational planning.

Discern the nuances between policies, rules, and different planning types.

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Definitions:

Contract Frustration

Refers to a situation where unforeseen events make the fulfillment of a contract impossible, voiding the obligations of the parties involved.

Government Ban

An official prohibition or restriction imposed by a governmental authority on certain activities, products, or substances.

Breach of Contract

An act of failing to fulfill the duties, terms, or conditions stipulated in a contract, which may result in legal action or penalties against the offending party.

Liquidated Damages

refers to a predetermined sum agreed upon by the parties to a contract, to be paid as compensation in case of breach of contract.