Which One of the Following Statements Is True Regarding Selling

question 4

Multiple Choice

Which one of the following statements is true regarding selling short?

• A)When an investor buys stocks and assumes they will increase in value,he or she is using a procedure called selling short.
• B)Selling short is selling stock that has been borrowed from a brokerage firm.
• C)When you sell short,you buy today,knowing you must sell or cover your short transaction,at a later date.
• D)In a short transaction,if the stock increases in value,the investor makes money.
• E)To make money in a short transaction,you must hold on the stock for at least one year.

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Definitions:

Bureau of Fisheries

A government agency responsible for the regulation and oversight of fishing activities, management of fish populations, and conservation of aquatic habitats.

Fishing License

A regulatory or legal authorization required to fish in certain areas, used to manage and conserve fish stocks and control fishing practices.

Income

Sum of money regularly obtained through one's job or investment decisions.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.