Which of the Following Is False Regarding Short Sales

question 83

Multiple Choice

Which of the following is false regarding short sales?

• A) The maximum potential loss on a short sale is unlimited.
• B) You will receive a margin call on a short sale only if the stock price rises.
• C) The maximum potential dollar gain from a short sale is the stock price when shorted.
• D) A short sale must be covered within one year.
• E) If you short a dividend paying stock you must pay for any dividends the stock pays while you are shorting the stock.

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Definitions:

Market Segments

Divisions of a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.

Multiple Products

Offering a range of different products within a company's portfolio to appeal to varied consumer needs and preferences.

Segmentation Strategy

A marketing approach that involves dividing a broad target market into subsets of consumers with common needs or characteristics.

Prince Sports

A brand known for manufacturing and selling sporting goods, particularly in tennis and squash.