Reading 55: Market Organization and Structure-LOS e 习题精选 2011, following, technical, contrast

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Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 55: Market Organization and Structure

LOS e: Compare and contrast the positions an investor can take in an asset.

 

 

Regarding the technical points affecting the short sales of a stock, which of the following statements is most accurate?

A) The lender must deposit margin to guarantee the eventual return of the stock.

B) Stocks can only be shorted in a down market.

C) The short seller must pay all dividends due to the lender of the shorted stock.

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The short seller must pay any dividends on the stock to the owner of the borrowed shares. The short seller must also deposit margin money to guarantee the eventual repurchase of the security.

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An investor can profit from a stock price decline by:

A) placing a stop buy order.

B) selling short.

C) purchasing a call option.

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Short selling provides a way for an investor to profit from a stock price decline. In order to sell short, the broker borrows the security and then sells it for the short seller. Later, if the investor can replace the borrowed securities by repurchasing them at a lower price, then the investor will profit from the transaction.

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Which of the following statements about selling a stock short is least likely accurate?

A) The seller must return the securities at the request of the lender.

B) The seller must inform their broker that the order is a short sale before completing the transaction.

C) The short seller may withdraw the proceeds of the short sale.

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Proceeds from the short sale must remain in the brokerage account along with the required margin deposit.

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A short seller:

A) does not receive the dividends.

B) often also places a stop loss sell order.

C) loses if the price of the stock sold short decreases.

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The short seller pays all dividends to the lender, loses if stock prices rise, and is required to post a margin account. A short seller often places a stop buy order to protect the short sale position from a rising market.