On August 8 of This Year, Brent Sold 500 Shares

question 21

Multiple Choice

On August 8 of this year, Brent sold 500 shares of ADO stock for $24 a share. On September 6 of this year, he purchased 500 shares of ADO stock to cover his position. The transaction on August 8:

• A)was a short sale.
• B)was a margin trade.
• C)was a wrap transaction.
• D)created a long transaction.
• E)was a pooling transaction.

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Definitions:

Causality

The relationship between cause and effect, where one event is understood to be the direct consequence of another.

Memory Loss

The unusual forgetfulness or inability to remember past events and information, often a symptom of neurological conditions.

Post Hoc, Ergo Propter Hoc

A logical fallacy that assumes a cause-and-effect relationship because one event follows another in time.

Labor Market

A marketplace where employers find workers and workers find jobs; the interaction determines wages, employment levels, and working conditions.