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You currently own 5% of all the available shares issued by XYZ Inc. The company plans to issue 1000 new shares, and gives you the
You currently own 5% of all the available shares issued by XYZ Inc. The company plans to issue 1000 new shares, and gives you the ability to purchase 5% of that new issuance to avoid ownership dilution. If you choose to purchase 5% of the new issuance, which of the following is true? Your purchase would be classified as a secondary market transaction. Your purchase would be classified as a primary market transaction. Your purchase would be classified as a money market transaction. None of the above. (cl) Assume an investor has decided to take a position in a randomly selected stock. Which of the following positions will have the greatest amount of risk, all else being equal? Long purchase made on a cash basis Long purchase made with the use of a margin account Short sell made on a cash basis. Short sell made with the use of a margin account. All of the positions stated above would be of equal risk
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