Which of the following is an example of a speculative technique?
A) Stock splitting
B) Declaring dividends
C) Short-selling
D) Stock dilution

Question

Quizplus · Accepted Answer

Short-selling is considered a speculative technique because it involves betting on the decline of a stock's price. The other choices (A, B, and D) are all considered corporate actions that can affect the value of the stock but are not necessarily speculative techniques. Stock splitting is a decision by the company to increase the number of shares outstanding without changing the overall value of the shares. Declaring dividends is a decision by the company to distribute a portion of the profits to shareholders. Stock dilution occurs when a company issues additional shares of stock, which can dilute the ownership and value of existing shares.

Which of the Following Is an Example of a Speculative