Which One of the Following Statements Is True

question 81

Multiple Choice

Which one of the following statements is true?

• 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:

Thoracolumbar Division

Pertains to the part of the nervous system that consists of the thoracic and lumbar sections, often related to the sympathetic nervous system.

ANS

Short for Autonomic Nervous System, which controls involuntary body functions such as heartbeat, digestion, and breathing.

Fight-or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival, initiating rapid bodily changes for emergency action.

Sympathetic

Pertaining to the part of the autonomic nervous system that typically prepares the body for action by accelerating the heart rate, constricting blood vessels, and raising blood pressure.