What is the 'cost of acquisition' when calculating short-term capital gains on shares? Option: The highest price of the shares on the day before the sale., The price at which the shares were purchased, including brokerage charges., The price at which the shares were sold., The fair market value of the shares on a specific date.

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What is the 'cost of acquisition' when calculating short-term capital gains on shares?

The highest price of the shares on the day before the sale.

The price at which the shares were purchased, including brokerage charges.

The price at which the shares were sold.

The fair market value of the shares on a specific date.

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What is the term for the profit made from selling a capital asset at a price higher than its purchase price?

Capital Gain

Net Income

Investment Return

Gross Profit

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What does 'impact cost' measure in the context of trading?

Market volatility

Bid-ask spread

The cost of executing a trade

Brokerage fees

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What is a share buyback and what are some reasons why a company might initiate one?

When a company issues dividends to its shareholders

When a company splits its stock into multiple shares

When a company repurchases its own shares from the market, potentially to increase share value or prevent a takeover

When a company sells additional shares to the public to raise capital

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What does 'shorting' a stock involve?

Investing in a diversified portfolio of stocks

Holding a stock long-term for future growth

Buying a stock with the expectation it will rise in value

Selling a stock with the expectation it will fall in value

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Which of the following is a potential advantage of intraday trading?

"Earning dividends and other shareholder benefits."

"Capitalizing on short-term price fluctuations."

"Holding stocks for long-term growth."

"Lower risk compared to delivery trading."