Which One of the Following Is Not True of Securities

question 17

Multiple Choice

Which one of the following is not true of securities held by dealers in securities?

• A)Securities are generally held as inventory, with any gains or losses on their disposition being ordinary in nature.
• B)A dealer may designate a particular lot as held for investment, but the designation must be made on the day the lot is acquired.
• C)Once a lot is designated as an investment, losses on its disposition cannot be treated as ordinary.
• D)A dealer can receive capital gain treatment on lots of stock held as inventory if they are held for more than two years.

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale at that price.

Price Elasticity

Price elasticity measures how much the quantity demanded or supplied of a good changes in response to a change in its price.

Government Program

Initiatives or interventions by the government designed to achieve specific objectives, such as social welfare, economic development, or infrastructure improvement.

Land Cultivation

The process of preparing land for growing crops, including plowing, applying fertilizers, and managing weeds.