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:

Automobile Production

is the series of processes involved in manufacturing automobiles, including assembly, painting, and quality control, among others.

Allocative Efficiency

Allocative efficiency occurs when resources are distributed in a way that maximizes the net benefit to society, matching consumer preferences with production.

Productive Efficiency

A state where an economy or entity is operating in such a way that it cannot produce more of one good without reducing the output of another good.

Minimum ATC

The lowest point on the average total cost curve, representing the most efficient scale of production.