Which of the Following Are True Concerning Short Sales of Exchange

question 45

Multiple Choice

Which of the following are true concerning short sales of exchange listed shares?
I. A short sale is permitted only if the last recorded change in the share's price was positive II. Proceeds from the short sale must be kept on deposit with the broker
III. Short-sellers must post margin with their broker to cover potential losses on the position
IV. The short-seller earns interest on any cash deposited with the broker that is used to meet the margin requirement

• A)I and II only
• B)I, III and IV only
• C)II and III only
• D)I, II, III and IV

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