Which of the Following Statements Is Incorrect

question 18

Multiple Choice

Which of the following statements is incorrect?

• A)In a short sale, investors place an order to sell a stock that they do not own.
• B)Investors sell a stock short when they anticipate that its price will rise.
• C)When investors sell short, they will ultimately have to provide the stock back to the investor from whom they borrowed it.
• D)Short-sellers must make payments to the investor from whom the stock was borrowed to cover the dividend payments that the investor would have received if the stock had not been borrowed.

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Definitions:

On Approval

"On approval" is a transaction condition allowing a buyer to take possession of goods before deciding to complete the purchase, subject to the goods’ return if not satisfied.

Personalized Sweatshirts

Custom-made sweatshirts tailored to include specific designs, names, or emblems as requested by the purchaser.

Disavow the Contract

The act of denying any responsibility or support for the contract, thereby seeking to void the agreement.

Identified to the Contract

Identified to the Contract refers to goods that have been designated as the subject of a sales or service contract.