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:

Pheromones

Biologically produced odorants that convey information to other members of the species.

Smell-Based Communication

A form of communication that occurs through the detection and interpretation of olfactory signals, common among animals to convey information.

Sex Hormones

Sex hormones are chemicals produced by the body that regulate the development and functioning of reproductive organs and secondary sexual characteristics.

Scent

The particular smell of an object, substance, or area, often processed and recognized by the olfactory system.