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If an investor feels that an asset will decrease in value, he may "sell short", so that he is selling high and buying low.
However, if instead the asset goes up in value, he will suffer a loss, since he will buy the asset at a higher price than he sold it for,
Note that there may be fees for borrowing the assets, and there may be payment of dividends paid on the borrowed assets.
Wiki User
∙ 13y ago
An investor may choose to sell short if they believe the price of a particular asset or security is going to decline. By selling short, the investor can profit from the decrease in value by buying back the asset at a lower price. This strategy allows investors to make money in a declining market or protect themselves from potential losses.
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Can an individual investor sell its shells without a secondary market?
what is a secondary investor what is a secondary investor what is a secondary investor
Price at which an investor will sell a security?
The price at which an investor will sell a security is typically determined by their desired profit or loss level. It can be influenced by various factors such as the investor's investment strategy, market conditions, and the perceived value of the security. Ultimately, the decision to sell a security is based on the investor's assessment of the potential return on investment and their individual financial goals.
What is the process of selling stock that investor does not own?
Selling a naked short
Why would an investor sell a covered call?
An investor will sell a covered call if the price of the stock or contract is losing its value. This way, the option on the terms of the contract will not be a zero loss, but close to something that is in the benefit to the investor. The purpose of buying a covered call is to make money with the intention of the stock climbing rather than decreasing.
Difference between the bid price and offer price?
The ''bid price'' is the price at which an investor can sell the securities he/she holds. The ''offer price is the price at which an investor can buy securities.
What should an investor examine in a mutual fund?
no
What happens to your mortgage if your house sells for less than the mortgage amount due?
If this is a legal "Short Sale" that was approved by the investor holding your note, you should be ok. If you are trying to sell the home for less that the balance of your current mortgage, you may run into some serious problems. Law vary from state to state.
What is a non-investor owned business?
A non-investor owned business is a business that does not sell stock. The business is privately owned by an individual or company, without any additional investors.
Why What if your ipod speaker works for very short time and then they go off?
you should sell it
What is the relationship between bond yields and price?
A bond yield is the price of a bond that an investor will hold said bond to maturity at. This relates to price as the price dictates when the investor will sell their bond.
What is relationship between bond price and yield?
A bond yield is the price of a bond that an investor will hold said bond to maturity at. This relates to price as the price dictates when the investor will sell their bond.
Should I sell my royalties?
Are you trying to decide if you should sell your royalties? There are a number of things to consider when you decide to sell your royalties. Our "Should you sell royalties" article covers this topic in depth. In short, it's best to hold onto your royalties when possible but sometimes there is a need for immediate cash.
