Short Selling
6 Questions
| Attempts: 739
A short quiz to test your understanding of our Short-selling lesson.
Questions and Answers
- 1.
Short-selling can be thought of as the opposite of going long or buying shares
- A.
True
- B.
False
Correct Answer
A. True -
- 2.
A short-sell is when an investor predicts that the price of an asset will go...
- A.
Up?
- B.
Down?
Correct Answer
B. Down? -
- 3.
When a short-seller trades with a lender they will require the short-seller to deposit a margin
- A.
True
- B.
False
Correct Answer
A. True -
- 4.
A fund manager short sells shares of Google at $300. He then closes out this position by placing a buy to cover trade at $250. Does he make a profit or loss on this trade?
- A.
Profit
- B.
Loss
- C.
Breaks even
Correct Answer
A. Profit -
- 5.
When a fund manager short-sells a stock he must return the same amount of shares to the lender when closing the position regardless of the share price?
- A.
True
- B.
False
Correct Answer
A. True -
- 6.
Why would a fund manager short-sell?
- A.
Speculation
- B.
Hedging
- C.
Both
Correct Answer
C. Both -
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
-
Mar 19, 2022Quiz Edited by
ProProfs Editorial Team -
May 06, 2012Quiz Created by
Ameaney
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