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.

Question

Quizplus · Accepted Answer

Selling short involves borrowing stock from a brokerage firm to sell it, hoping to buy it back later at a lower price.

Which One of the Following Statements Is True