Which of the Following Statements About Short Selling Is (Are)

question 87

Multiple Choice

Which of the following statements about short selling is (are) true?
I. Short selling requires an initial margin deposit.
II. Short sellers begin a transaction with a sale and end it with a purchase.
III. Short sellers profit when the stock prices rises.
IV. Short selling can be a risky strategy.

• A) IV only
• B) I and II only
• C) I, II and IV only
• D) I, II, III and IV

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Definitions:

Lewis Structure

A Lewis structure is a diagrammatic representation of the arrangement of valence electrons around atoms in molecules, indicating the bonding between atoms as well as the lone pairs of electrons.

Ethyne

A colorless gas with a sharp, distinct odor; the simplest alkyne, it is a hydrocarbon with the formula C2H2.

Acetylene

A hydrocarbon and the simplest alkyne, used as a fuel and a chemical building block, recognized by its formula C2H2.

Covalently Bonded Molecule

A molecule whose atoms are held together by covalent bonds, which involve the sharing of electron pairs between atoms.