Which One of the Following Statements Is True

Multiple Choice

Which one of the following statements is true?

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.