Which of the Following Statements About Short Selling Is False

question 47

Multiple Choice

Which of the following statements about short selling is false?

• A) At some time in the future,the speculator must buy the security to "cover" the short sale.
• B) Short selling is legal.
• C) Short selling involves selling a security that you do not own by borrowing it from your broker.
• D) Speculators may profit from short selling when stock prices are falling.
• E) Speculators will generally profit from short selling when the company puts out positive information about its sales prospects.

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