To Maximize Profit or Reduce Dollar Losses When You Sell

question 13

Multiple Choice

To maximize profit or reduce dollar losses when you sell your investments,it is important to do all of the following except

• A) Keep purchase records.
• B) Monitor current values to spot opportunities for when to sell.
• C) Identify commissions or fees paid.
• D) Keep a list of sources of information (such as Internet addresses) for reference.
• E) Identify original dollar costs after you sell investments.

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Definitions:

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit.

Pareto Optimal

A state of distributing resources that precludes the possibility of augmenting the status of any participant or preference without detriment to another.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a whole as a result of an economic transaction or activity, without them directly paying for it.

Utility Function

A mathematical representation that describes how consumers rank preferences among different commodity bundles.