Which of the Following Statements Is Incorrect

question 35

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 of the stock had not been borrowed.

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Definitions:

Means

Statistical measures that represent the average or central value of a data set by summing all the values and dividing by the number of values.

Main Effects

The direct influence of an independent variable on a dependent variable in an experimental study.

Independent Variable

A variable in an experiment that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

In statistical analysis, this is the variable that is being tested and measured, often seen as the outcome influenced by independent variables.