Selling Stock That an Investor Does Not Own and Must

question 150

Multiple Choice

Selling stock that an investor does not own and must replace later is called

• A) speculating.
• B) optioning.
• C) selling short.
• D) selling long.
• E) spot trading.

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Definitions:

Proxy Solicitations

The process of requesting the authorization from shareholders to vote on their behalf in company decisions, typically at shareholder meetings.

Sarbanes-Oxley Act

A U.S. federal law aimed at protecting investors from fraudulent accounting activities by corporations, enacted in 2002 in response to major corporate and accounting scandals.

Chief Financial Officer

A high-ranking executive responsible for managing the financial actions of a company, including financial planning, risk management, and financial reporting.

Annual Reports

Comprehensive reports issued yearly by companies to provide shareholders and other interested parties with detailed information on financial performance and operations.