Which of the following is a trading decision? Which is investment decision, and why? ...
70.2K
Verified Solution
Link Copied!
Question
Finance
Which of the following is a trading decision? Which is investment decision, and why?
1. Ricardo sells all shares of XYZ Corp. because he has a hunch the company will sell fewer granola bars this year than last. (0.4 point)
2. Mona sells 100 shares of Tonicwater.com two days after buying them upon confirming that the company has $1,000,000 more debt than she thought it did. (0.4 point)
3. A rumor runs rampant that Hoboken Poultry will have to cull half its chickens due to avian flu. Hobokens share sink 50% on the news. Miranda sells all shares in company as soon as she hears the rumor. (0.4 point)
4. Assume that an investor sells short 200 shares of stock at $75 per share. At what price must the investor cover the short sale in order to realize a gross profit of $5,000? (0.4 point)
5. Ulrich notices that Soup t Nuts Corp. has been selling fewer nuts at its retail location than it used to. He visits eight stores in his local area and then calls a few remote outlets. Clerks at the store tell him that sales of nuts are slowing and he damps all shares in the company. (0.4 point)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
