Which of the Following Statements About Short Selling Is False

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.