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:

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