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An investor can acquire shares of stock in Acme Corporation either by purchasing shares on the stock ...

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An investor can acquire shares of stock in Acme Corporation either by purchasing shares on the stock ...

An investor can acquire shares of stock in Acme Corporation either by purchasing shares on the stock market or by purchasing a bond that is convertible into shares of Acme stock. After careful study, the investor discovers that she can profit by purchasing the bond, converting it to shares of stock, and selling the stock. This practice is called:
A) selling short.
B) arbitrage.
C) profiteering.
D) dumping.
E) none of the above

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Microeconomics

Edition: 8^th

Author: Pindyck

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corie Author

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