When the Share Price Series Breaks Through the Moving Average

question 17

Multiple Choice

When the share price series breaks through the moving average line from below,a technical analyst would probably suggest it is a good time to:

• A) buy the share.
• B) sell the share.
• C) hold the share.
• D) short the share.

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Definitions:

Future Costs

Costs that are expected to be incurred in future periods as opposed to those already incurred or realized.

Bill And Hold Basis

An arrangement where a seller bills a customer for products but holds onto the inventory until it is actually needed or requested by the customer.

Sales Agreement

A detailed contract which outlines the terms of sale of goods or services between two parties.

Earnings Management

The practice of using accounting techniques to produce financial reports that present an overly positive view of a company's business activities and financial position.