Should the average investor consider using short selling techniques? Why or why not?
What will be an ideal response?
Answer: Given the fact that the long-term trend of the stock market is upward, selling short is very risky and is not something you should become involved in. You can lose a bundle because you may get caught selling low and later buying high.
You might also like to view...
Given that the executive summary appears near the front of the report, it should be written first (before writing the rest of the report).
a. true b. false
Which of the following statements about Treasury inflation-indexed bonds is not true?
A) The principal amount used to compute the interest payment varies with the consumer price index. B) The interest payment rises when inflation occurs. C) The interest rate rises when inflation occurs. D) At maturity, the securities pay the greater of face value or inflation-adjusted principal.