1. What is a short sale and why does it occur? 2. What was the Obama...

1. What is a short sale and why does it occur?

2. What was the Obama stimulus package and what was its purpose?

Expert Solution

Answer 1 : Short sale is termed used in real estate where the owner of the house is sell less than the actual value of the house. Short sale is selling directly through retialers and not auction the house. Here the title has been transfered, the sale price was insufficient to pay the cost of sales. But in stock market short sales means selling of securities that they predict in future the price has been decreased and purchased the equal number of shares in future.

The short sale has been occured because

Credit score of the person cannot reduced in case of real estate.
Short sale in case of real estate has been occured in a situation in which the seller has not been able to paid there mortgage and they settle through giving house through mortgage.
In stock market short sale occured in order to gain profit by investors.

Answer 2 : Obama Stimulus package is a package of economic measures made by government to stimulate the people of USA so that in result flourished economy has been developed in the country.Stimulus packages provides basic food, health and medical facialities in order to flourished economy.

The purpose of stimulus package are that :

To boost the economy and reverse a recession from an economy.
To provide all the citizen better and useful life.

Rahul Sunny answered 2 years ago

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