An Investor with a Long Position in a Security Will

question 78

Multiple Choice

An investor with a long position in a security will make money:

• A)if the price of the security increases.
• B)if the price of the security declines.
• C)if the price of the security remains stable.
• D)only if the security has been purchased on margin.
• E)only by shorting the security.

---

Definitions:

Demand Increases

A situation where the quantity of a product or service desired by buyers exceeds the quantity supplied at a particular price.

Supply Decreases

A condition in the market where the quantity of a product or service available for sale declines, which can lead to higher prices.

Quantity Supplied

is the amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Supply Increased

A situation in which the quantity of a good or service that producers are willing and able to offer for sale rises, possibly leading to lower prices.