Assume That the Price of ABC Common Stock Fell from in a Short

question 117

Multiple Choice

Assume that the price of ABC common stock fell from in a short period of time from $105 to $84.Which of the following investors probably made the most money,if all of these transactions occurred prior to the drop in price?

• A) Abe took a long position in 1000 shares of ABC
• B) Bert took a short position in 1000 shares of ABC
• C) Carrie kept her money in CDs at the bank
• D) Darren shorted 2000 shares of ABC using a margin loan
• E) Earl used a margin loan to finance a 2000 share long position in ABC

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Definitions:

Synovial Joints

Highly movable joints surrounded by a fluid-filled capsule, allowing for smooth movement between bones.

Cartilaginous

Relating to a type of flexible connective tissue found in various parts of the body, such as joints and respiratory structures.

Fibrous

Composed of or characterized by the presence of fibers.

Inarticulate

Lacking the ability to express oneself clearly or effectively in speech or writing.