7. Generally, what happens to the price of a stock when an acquisition of the company is announced? Chapter 12 1. When would you want to short sell a stock? How do you short sell a stock? 2. What is Reg FD? How does it protect investors? 3. What are some of the potential negative effects of short selling? What are some of the possible benefits? 4. Asume that JN) stock is priced at $101 per share and pays a dividend of $3 per share. An investor purchases the stock on margin, paying $80 per share and borrowing the remainder from the brokerage firm at 10 percent annualined interest. If after one year, the stock is sold at a ta price of S117 per share, what is the return to the investon? 5. Explain what the bid wsk spread is and what its components are provide examples of stocks that have large spread 6. When would you prefer to use a limit order vs. a market onder? English (United States)