Question 7
"Selling short" involves borrowing shares of stock and then:
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Saying flattering things in public about a stock |
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Returning them within 24 hours |
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Borrowing the money to buy them |
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Trading the stock for short-term bonds |
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Selling them in anticipation of a price drop
Question 8
In contrast to issuing a bond, the great advantage of issuing
stock from the point of view of a company is that:
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Money raised from the stock sales does not have to be
repaid |
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Dividends are more attractive to investors than interest
payments |
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Stock sales are less heavily regulated than bond sales |
|
It takes less time to raise money with stock than with
bonds |
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It can be sold directly to investors without paying an
underwriter
Question 9
The Dow Jones Industrial Average is based on the performance of
how many stocks:
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|