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If an investor feels the price of a stock will decline in the future, which trade should the investor undertake?
Profit
The financial gain achieved when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.
Positive-Sum Game
A situation in economics or game theory where all participants can gain or benefit in some way; opposite of a zero-sum game.
Zero-Sum Game
A game theory concept where one participant's gain or loss is exactly balanced by the losses or gains of the other participant(s).
Negative-Sum Game
A situation in which the total losses incurred by the participants are greater than the total gains.
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