Which of the Following Statements Is True Regarding Short Sales

question 50

Multiple Choice

Which of the following statements is true regarding short sales?

• A)An investor can only remain in a short sale 6 months or less.
• B)Short sales can be done on either a cash or margin account.
• C)Short sellers borrow the stock sold short from the exchanges.
• D)Dividends paid during the short sale must be covered by the seller.

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Definitions:

Carbohydrates

Organic compounds, such as sugars, starches, and cellulose, that are an important source of energy for living organisms.

Amylase

is an enzyme that helps in the digestion of carbohydrates by breaking them down into sugars, found in saliva and pancreatic fluid.

Saliva

A clear liquid secreted by the salivary glands in the mouth, which helps in digestion and maintains oral hygiene.

Nutrient Absorption

The process by which substances such as vitamins and minerals from food are taken up into the bloodstream from the digestive tract.