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Which One of the Following Statements Is True Regarding Selling

Question 4

Multiple Choice

Which one of the following statements is true regarding selling short?


A) When an investor buys stocks and assumes they will increase in value,he or she is using a procedure called selling short.
B) Selling short is selling stock that has been borrowed from a brokerage firm.
C) When you sell short,you buy today,knowing 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 makes money.
E) To make money in a short transaction,you must hold on the stock for at least one year.

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