ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
True
|
|
|
False
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Buy low, sell high is a strategy where you buy stocks or securities at a low price and sell them at a higher price. This strategy can be difficult as prices reflect emotions and psychology and are difficult to predict.
Detailed explanation-2: -The Short Position – Sell High, Buy Low In a short sell transaction the investor borrows the shares of stock from the investment firm to sell to another investor. Investment firms normally have a large inventory of stocks on hand or can borrow stock from another firm to loan to the investor.
Detailed explanation-3: -Mutual Funds Are Not Stocks Stocks are driven by the “buy low, sell high” rationale, which explains why, in a falling stock market, many investors panic and quickly dump all of their stock-oriented assets.