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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