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Q: What is short selling and leveraging as used in investment strategy?
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What is a hedge fund?

Well there are a couple of different ways you could define it... 1. (a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging) 2. an investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of activities than other investment funds and also pays a performance fee too its investment manager . and more...


When would convertible arbitrage be used?

Convertible arbitrage should be used as a hedge fund investment strategy. It is a complex strategy that should be used by experienced investors who understand the complexity of long-short investing.


What is the difference between selling a naked put vs. selling a naked call?

Selling a naked put is a bullish strategy, and is mathematically the same as a covered call write, where you buy something and sell a call against it. Selling a naked call is a bearish strategy, and is the same as covered short write, where you short something and write a put against it. In either case, you make money from time decay, falling volatility, or a move in the direction that you want.


What time frame is considered a short term investment?

A short-term investment typically refers to an investment that is held for a period of one year or less. It can involve buying and selling stocks, bonds, or other financial instruments within a relatively short period of time in order to take advantage of short-term price fluctuations or market opportunities.


What is hedge funds?

Well there are a couple of different ways you could define it... 1. (a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging) 2. an investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of activities than other investment funds and also pays a performance fee too its investment manager . and more...


What is selling short against the box?

Selling short against the box means you are selling short a stock that you own, as opposed to a naked short in which you are selling short a stock that you do not own.


Wher is the best place to stash $50000 as a Long Term Investment ?

I would recommend a 401k or a short term investment fund. This is a great investment that is short term and you can gain double on your investment.


Which marketable security would you choose for a short term investment?

Which security would you choose for a short-term investment


How does Forex hedging protect one against investment loss?

Forex hedging protects one against investment loss by hanging onto two "long" and "short" positions hoping that the results of each one (long and short) will partially cancel each other out. This will help offset any losses - at least that is the strategy that the investors hope for when doing this.


What is the difference between short selling and naked short selling?

Short selling or "shorting" is the practice of selling a financial instrument that the seller borrows first (does not own), and then purchases it later to "cover the short". Short-sellers attempt to profit from an expected decline in the price of a security, such as a stock or a bond.Naked short selling or "naked shorting" is the practice of selling a stock short, without first borrowing the shares or ensuring that the shares can be borrowed as is done in a conventional short sale.


What is the meanning of short term strategy?

Short term strategy is a plan for the close future. Long term strategy would be planning for long run of a battle or war.


Developing An Investment Strategy?

Developing an investment strategy is key to financial success. There are various approaches that the investor could decide upon. For example, a long term investor is one who thinks about the future while a short term investor might hop in to test the current market looking for a quick turn around. Long term investors' consistently invest in the market while short term investors jump on what is currently hot and leave when the market cools down.