If an Investor Sells a Stock Short, That Individual Reduces

question 2

Multiple Choice

If an investor sells a stock short, that individual reduces the risk of loss by

• A)buying a put
• B)buying a call
• C)entering a limit order to sell the stock if its price declines
• D)increasing the collateral with the broker

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Definitions:

Chapter 13

A section of the U.S. Bankruptcy Code that allows individuals with a regular income to reorganize their debts, creating a plan to repay all or part over a period of time.

Societal Cultures

The shared values, norms, behaviors, and artifacts that characterize different groups or societies.

Organizations

Organizations are collections of people working together to achieve a common purpose.

Corporate Rituals

Established ceremonies or actions performed in a company that symbolize its values and culture.