The Process of Using Accounts Receivable as Security for a Loan

question 58

True/False

The process of using accounts receivable as security for a loan is known as pledging accounts receivable.

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Definitions:

Short 100 Shares

The act of selling 100 shares of stock not currently owned, with the expectation that the stock can be bought back at a lower price in the future for profit.

Rate of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Short 100 Shares

Short 100 Shares refers to the investment strategy where an investor borrows 100 shares of a stock with the aim of selling them with the expectation that their price will decline.

Repurchase

The action of a company buying back its own shares from the marketplace, reducing the amount of outstanding stock.