WAEC Commerce 1998 Question 27

Question 27

Stock Exchange

An action taken by a seller to avoid risks from unforeseeable price fluctuation is known as

  1. A.tendering
  2. B.auctioneering
  3. C.quotation
  4. D.hedging
  5. E.haggling
Show the answer and explanation

Answer: D (hedging)

Explanation

Hedging protects a trader against losses from price changes.