What is the defining characteristic of a short sale in trading? Option: Holding an asset for the long term, Investing in a diversified portfolio of assets, Selling an asset first and buying it later, Buying an asset first and selling it later

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What is the defining characteristic of a short sale in trading?

Holding an asset for the long term

Investing in a diversified portfolio of assets

Selling an asset first and buying it later

Buying an asset first and selling it later

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What does 'shorting' a stock involve?

Selling a stock with the expectation it will fall in value

Buying a stock with the expectation it will rise in value

Holding a stock long-term for future growth

Investing in a diversified portfolio of stocks

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What is a Short Position in stock trading?

"Buying shares with the expectation of price increase"

"Selling borrowed shares with the expectation of price decrease"

"Holding shares for a short period"

"Investing in stocks with high volatility"

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What is the primary motivation behind shorting a stock?

To gain ownership in a company with strong growth potential

To capitalize on an expected decline in the stock's price

To profit from an anticipated increase in the stock's price

To generate income through dividends and interest payments

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How can intraday traders potentially profit in a bearish market?

"By short selling stocks"

"By investing in bonds instead of stocks"

"By increasing their trading frequency"

"By holding onto stocks for the long term"

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What is a key advantage of shorting in the futures market compared to the spot market?

Greater liquidity and trading volume

The ability to hold short positions overnight

Reduced risk of short delivery penalties

Lower margin requirements for short positions