When Does the Holder of a Short Position Realize a Profit

question 59

Multiple Choice

When does the holder of a short position realize a profit?

• A)when prices rise
• B)when prices either remain constant or rise
• C)when prices remain constant
• D)when prices either remain constant or decline
• E)when prices decline

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Definitions:

Near Shoring

The practice of transferring a company's business or production processes to neighboring or nearby countries to reduce costs and improve logistics.

Disintermediation

Eliminating intermediaries in a supply chain, allowing direct transactions between buyers and producers.

Supplier Codes

Unique identifiers assigned to vendors that allow companies to manage and track transactions and orders more efficiently.

Social Sustainability

The ability of a society to develop processes and structures which not only meet the needs of its current members but also support the ability of future generations to maintain a healthy community.