Which of the Following Is Not Correct

question 80

Multiple Choice

Which of the following is not correct?

• A) You pay interest on money borrowed to purchase stock on margin.
• B) Selling short is selling stock borrowed from a brokerage firm.
• C) A call option is the right, but not the obligation, to purchase a stock at a specified price by a given date.
• D) A brokerage firm receives double its commission when stock is bought and sold when the investor is selling short.
• E) If the stock price decreases and you purchased that stock on margin, you may receive a margin call.

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Definitions:

Adjudication

A formal process in which an authoritative figure or body makes a judgement or decision regarding a dispute, often in a legal context.

Fractionation

A process that involves dividing or separating a mixture into portions or fractions, often used in scientific and industrial applications.

The Isolate

An individual who is disconnected or separated from their social group or community.

Toxic Triangle

A concept in leadership that describes a situation involving an destructive leader, susceptible followers, and a conducive environment.