investment - Risk versus return Selling Short ,oranysale...

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Risk versus return Selling Short – The selling of a security that the seller does not own, or any sale  that is completed by the delivery of a security borrowed by the seller. Short  sellers assume that they will be able to buy the stock at a lower amount than the  price at which they sold short. Buying on Margin - The purchase of an asset by paying the margin and  borrowing the balance from a bank or broker. Buying on margin refers to the  initial or down payment made to the broker for the asset being purchased. The  collateral for the funds being borrowed is the marginable securities in the  investor's account. Before buying on margin, an investor needs to open a margin  account with the broker. In the U.S., the amount of margin that must be paid for a  security is regulated by the Federal Reserve Board. IPO (Initial Public Offering) - The first sale of stock by a private company to  the public. IPOs are often issued by smaller, younger companies seeking  the capital to expand, but can also be done by large privately owned companies  looking to become publicly traded. Investment Bank- a financial intermediary that performs a variety of services.  This includes underwriting, acting as an intermediary between an issuer of  securities and the investing public, facilitating mergers and other corporate  reorganizations, and also acting as a broker for institutional clients.
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