When might an investor sell a stock short? What risks are involved in selling short?
Answer to relevant QuestionsDoes a downturn in the economy hurt all companies equally? Provide several examples to support your answers. Why is the economic concept of scarcity a crucial concept for businesspeople to understand?What are the licensing and continuing education requirements for securities brokers?Looking at the history of the stock market over the past 30 years (see Exhibit 19.9), does it make sense to invest in index mutual funds? Why or why not?If accepting risk is part of being an entrepreneur or running a business, should the government, taxpayers, or any other entity ever bail out a company that took risks and failed? Explain your answer.
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