Midwood High School

FIN MISC

1)What is meant by a margin call (you will have to do research on the internet to find out about this)?

2. Explain how someone who spent all their money to buy stock in Tesla for $955 per share on Feb 19 with 50% Margin went broke even though it has a value at $5000 per share one year later? You can find the daily share price of Tesla shares here:

3.    Please submit your response to the text book assignments for Chapter 11 Q 10 on page 403. I will post the question for those who have the ebook in the Assignments section of Blackboard. In addition, answer the following questions related to a short sale:

1. 1. When buying a stock in the traditional way there is an old Wall Street saying that you should always first “Buy Low, then Sell high”. How is that saying amended for a short sale?
   2. What is meant by the term a “short squeeze”? Once again you must research outside of the text to find the answer. This is when the
   3. Why is it considered riskier to sell short than to buy a stock?

4. Is it always illegal for a “corporate insider” such as a director or an officer to buy and sell the corporation’s stock? If not, then under what circumstances would it be illegal?

5. The author talks a lot about sunglasses and umbrellas on page 377. How does this discussion apply to investments?

6. Provide me with an one industry that would benefit and one industry that would get hurt in a period of rising energy prices.

7. Does volatility increase or decrease when you hold investments over a longer

period?

8. Please distinguish between buying securities on the Primary market from buying it on the Secondary Market.
9. Please distinguish between a Market Order for the purchase of a security from a Limit Order. Which is riskier?
10. How does a stop order reduce risk related to holding a security?

 11)Please distinguish between a Day Order and a Good-till-cancelled order.

12. Harry and Harriet own 1,000 shares of AI Inc. in a brokerage account that is titled "Harry and Harriet, Tenancy In Common". Explain how the assets would be handled if Harry passed away. Would this scenario be different if the account was titled "Harry and Harriet, Joint Tenancy With the Right of Survivorship"?