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:

Nature

The observable aspects of the earth and its environment, encompassing flora, fauna, geological structures, and natural occurrences, distinct from man-made entities or human activities.

Lawsuits

Legal actions taken by one party against another for the resolution of a dispute in a court of law.

Confidentiality Breach

An incident where information that was meant to be kept secret is disclosed without authorization.

Ethical Duty

An obligation to adhere to moral principles and conduct, typically within a professional context, ensuring fairness, honesty, and integrity.