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.