Which of the Following Statements Is Not True

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.