A Short Sale Occurs When a Buyer Does Not Bring

question 35

True/False

A short sale occurs when a buyer does not bring adequate funds to a mortgage closing.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership of a fraction of a company, providing voting rights and a share in the company’s profits.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Treasury Stock

Refers to shares that were issued and later reacquired by the company. It is subtracted from total equity.

Voting Rights

The rights of shareholders to vote on company matters, typically exercised during a corporation's annual general meeting.