Which of the Following Statements Is Not True

question 113

Multiple Choice

Which of the following statements is not true?

• A)When an investor buys stocks and assumes they will increase in value, he or she is using a procedure called buying long.
• B)Selling short is selling stock that has been borrowed from a stockbroker or brokerage firm.
• C)When you sell short, you buy today, knowing that 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 loses money.
• E)To make money in a short transaction, you must be correct in predicting that a stock will decrease in value.

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Definitions:

Orbital Frontal Cortex

A region of the prefrontal cortex located just above the eyes that is involved in decision-making, impulse control, and responding to rewards.

Social Context

is the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual is educated or lives in, and the people and institutions with whom they interact.

Amygdala

A part of the brain involved in emotion regulation, emotional learning, and forming memories associated with emotional events.

Nucleus Accumbens

A region in the brain's forebrain that plays a central role in the reward circuit, associated with pleasure, reinforcement learning, and addiction.