1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lions [1.4K]
2 years ago
11

An investor sold 100 shares of ran common stock short at $50 per share. the ran is now at $38. the investor is still bearish on

the stock but would like to protect that gain. what would you recommend if this were your client
Business
1 answer:
Anni [7]2 years ago
7 0

If the investor is my client, i will advise him to enter a buy stop order at $40.

<h3>What is the buy stop order?</h3>

In the share market, these are protective tool that are mainly for short sellers.

Now, as the stock should begin to rise from its current price of $38, once it reaches or exceeds $40, a buy order at the market is entered.

Hence, the stock purchased is used to cover the short position and the investor's profit is the $50 sale price minus the cost of the purchase.

However, because the investor is short term person, the only protective order would be a buy and not a sell.

Therefore, i will advise him to enter a buy stop order at $40

Read more about buy stop order

<em>brainly.com/question/14206094</em>

#SPJ1

You might be interested in
Buyer Bill will receive a utilities bill for an estimated $300 at the end of the month. At closing, the seller has used an estim
liraira [26]

Answer:

b) a debit to the seller and credit to the buyer for $100

Explanation:

The portion of the utilities bill consumed by the seller is not to be borne by buyer Bill, he cannot be made to pay for what he did not consume, the correct treatment is for seller to bear the $100 consumed by him by way of the following entries

Debit  The seller $100

Credit  Buyer bill $100

This is in the spirit of fairness to both Buyer Bill and Seller.  

5 0
3 years ago
Net sales for the year were $325,000 and cost of goods sold was $240,500 for the company’s existing products. A new product is
marin [14]

Answer:

The correct answer is B.

Explanation:

Gross profit equals net sales minus cost of sales(Net sales- Cost of Sales).

Net sales = $325,000

Cost of Sales = $240,500

Therefore we have;

$325,000 - $240,500

=$84,500

Gross profit ratio is (Gross profit/net sales) x 100%

($84,500 x $325,000) x 100%

26%

6 0
2 years ago
26. Which of the following best describes an entrepreneur? A) a person who forms and operates a business B) a person who invests
scoundrel [369]

Answer:

A) a person who forms and operates a business

Explanation:

An entrepreneur is a person who forms and operates a business. An entrepreneur is one of the factors of production. Other factors include land, labour and capital.

An entrepreneur takes up the financial risk of a business.

An entrepreneur earns profit or loss.

A shareholder is a person who invests in an existing business

A bondholder is a person who lends capital to a new business

I hope my answer helps you.

3 0
2 years ago
Write a sample professional greeting you would use when performing a cold call at a business for the purpose of delivering your
allochka39001 [22]
<span>Good day! This is [insert name here]. I am interested in applying for a position with your company and I am calling to see if I can make an appointment with human resources to submit my resume. May I know who I should talk to regarding this? Thank you very much!</span>
8 0
3 years ago
“Gambler fallacy” is the Believe that if people keep gambling they will eventually win big
Elena-2011 [213]
The answer is False

Hi hope you doing well!
6 0
2 years ago
Other questions:
  • Identify which type of sampling is​ used: random,​ systematic, convenience,​ stratified, or cluster.To determine customer opinio
    15·1 answer
  • Explain the saying dress for the position you want not the position you have
    8·1 answer
  • Producer surplus is equal to
    15·1 answer
  • Why might vertical systems be a business ethics issue? ?
    11·1 answer
  • Cadmia and Rhodia specialize in the production of electronics and pharmaceutical products respectively. They are considered the
    11·1 answer
  • Fugazi City College sold season tickets for the 2015 football season for $240,000. A total of 8 games will be played during Sept
    13·1 answer
  • Assume that a customer shops are a local grocery store spending an average of $400 a week, resulting in the retailer earning a $
    9·1 answer
  • If lenders are seeking a 3% real interest rate, the inflation rate is expected to be 6%, and real GDP is growing at 4%, what nom
    5·1 answer
  • Jenin recently purchased 100 shares of Tarifi's Optical common stock for $6,000. The stock is expected to provide an annual cash
    12·1 answer
  • Under what circumstancess should outsourcing be used for building Information systems​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!