FINRA SIE Question Answer
If an investor is bullish on ABC, which of the following actions will he most likely take?
Buy ABC puts
Buy ABC stock
Sell ABC calls
Sell ABC stock short
Step by Step Explanation:
Bullish Position: Buying ABC stock aligns with the expectation that the stock’s price will rise, allowing the investor to profit.
Incorrect Options:
A: Buying puts is a bearish strategy.
C: Selling calls benefits from stable or declining prices.
D: Selling short is a bearish strategy anticipating a price drop.
References:
FINRA Guidance on Market Strategies: FINRA Trading Basics.
TESTED 09 Jul 2025
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