Which of the Following Is an Example of a Speculative

question 28

Multiple Choice

Which of the following is an example of a speculative technique?

• A) Stock splitting
• B) Declaring dividends
• C) Short-selling
• D) Stock dilution

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Definitions:

Letter-Of-Credit

A financial instrument issued by a bank guaranteeing a buyer's payment to a seller, providing security in international trade transactions.

Formal Contract

A legally binding agreement, often in written form, that explicitly outlines the terms and conditions agreed upon by the parties involved.

Informal Contract

A non-official agreement that lacks the formalities of a written contract but is still legally binding.

Binding Contract

A legal agreement between parties that is enforceable by law, where each party is obliged to fulfill their promises or face legal consequences.