Which of the Following Is Not Correct

question 108

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 option is the right to buy or sell a stock at a predetermined price during a specified period of time.
• 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:

Billboards

Large outdoor boards used for posting advertising.

Pioneering Product

The first of its kind product introduced to the market, often leading to a new category of goods.

Flighting Schedules

Flighting schedules are advertising strategies that involve alternating periods of heavy advertisements with periods of no advertising, used to optimize impact while controlling costs.

Snowboards

A type of equipment used for snowboarding, consisting of a board to which the rider's feet are attached with bindings, allowing them to slide down snow-covered slopes.