0
Short selling stocks is risky because there are no guarantees of what the market share will be after the sell. The return rate could be high or low, depending on if the stocks fell as predicted.
Wiki User
∙ 2013-04-19 08:07:57
Add your answer:
Earn +20 pts
What is meant by the term micro cap stocks?
Micro cap stocks are generally those with a higher capital funding than other stocks. They typically are lower risk investments but may consequently produce a lower yield and return.
Who decides when a stock goes up or down?
the people who buy and sell stocks give "bid" and "ask" prices for the stocks that they are buying or selling.when the ask price of some one selling and the bid of some one selling meet, that is the price of the stock.when they don't meet either the seller must give in to the buyer and go lower or the buyer give in to the seller and go higher. If the sellers are pessimistic about the market and keep selling for cheap then the price goes down. And if the buyers are optimistic and buy higher it will go up.
What does it mean when Karen wants to buy stock but is worried about the current bear market?
that many investors are selling their stocks in anticipation of lower profits
How are prices determined in stock market?
The prices you see in the stock marketare the 'market price' or 'street price'. It's basically the averages of what people buy and sell it at. ASX for example have people selling stocks higher or lower than the market price, so really; that's a guide of what to buy it at.
Air moves from where pressure is higher to lower or lower to higher?
Higher to lower.
What is a dominant portfolio?
Dominant Portfolio is part of the efficient frontier in modern porfolio theory. If a portfolio has a higher expected return than another portfolio with the same level of risk, a lower level of expected risk than another portfolio with equal expected return or a higher expected return and lower expected risk than the the portfolio is dominant.
Why do people invest in fixed income securities?
Main purpose of investing in fixed income securities is regular flow of return. It also has lower risk when compared to investment in shares/stocks.
How does a portfolio with 2 stocks decrease if both stocks are increasing?
The value of a portfolio may decrease when the stocks are increasing in price if the portfolio owner is making bets that the stocks will decrease in price. One way to do this is by short selling ('shorting') a stock. This essentially means you borrow the stock and then immediately sell it, in the hope that the stock will decrease in value so you can buy it back at the lower price (the opposite of buying a stock and hoping for an increase in value).
Why do bonds typically offer a lower return than stocks?
Often they don't, and when they do it is because equity investment is riskier (given that creditors have, by default, the overriding claim over the assets of the relevant firm).
What are the Merits and demerits of promissory notes?
higher liquidity, constant assured return on your investment lower returns compared to other investments
Does green have a higher or lower freqenuency?
higher or lower than what?
Is pressure higher at a lower or at a higher elevation?
lower elevation
