Ben Is Selling Stock That He Borrowed from His Broker

question 45

Multiple Choice

Ben is selling stock that he borrowed from his broker and planned to replace at a later date. Which of the following strategies is he using?

• A) A call option
• B) Direct investing
• C) Buying on margin
• D) A put option
• E) Selling short

Understand the impact of the profit margin ratio and the asset turnover ratio on a company's return on assets.

Recognize the reporting requirements for income from continuing operations and income (loss) from discontinued operations.

Identify the correct treatment of gains or losses on disposal of a discontinued operation in financial statements.

Understand the dividend yield and its relation to net income and market price per share.

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