A Short Position Refers to

question 107

Multiple Choice

A short position refers to

• A)inadequate margin in a margin account.
• B)securities you have sold but do not own.
• C)an order to sell stock at a price below its current market price.
• D)securities you purchased but have not yet taken delivery of the shares.

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Definitions:

Marginal Cost

The uptick in complete expenditure resulting from the creation of one more unit of a product or service.

AFC Curve

The average fixed cost curve, representing the fixed costs associated with producing goods or services, spread out over the quantity produced.

Fixed Cost

Costs that do not vary with the level of output or business activity, such as rent, salaries, and insurance premiums.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, representing how fixed costs dilute as more units are produced.