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.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: An increase in a corporation's earnings per
Q2: Patsy Banz owns 200 shares of a
Q3: If the average cost of a stock
Q5: When completing stock transactions,payment for stocks is
Q6: Anthony Edwards wants to diversify his portfolio
Q7: Which one of the following statements is
Q8: Most speculators purchase stock and hold onto
Q9: When investors purchase stock on margin,they borrow
Q10: Common stock dividends are paid out of
Q11: Which one of the following is a