An Investor Who Short Sells a Stock Will Receive a Margin

question 8

True/False

An investor who short sells a stock will receive a margin call if the price of the stock decreases substantially.

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Definitions:

Binding Price Floor

A government-imposed minimum price set above the equilibrium price, leading to a surplus of the product in the market.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Shrimp Market

A specific sector within the food industry focusing on the buying, selling, and distribution of shrimp.