Which of the following is correct?
A) Hedge funds often sell stock they don't even own.
B) Hedge funds maintain secrecy about their holdings, trading, and strategies.
C) Hedge funds are limited to sophisticated investors.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

Hedge funds are known for their aggressive investment strategies, including selling stocks short (selling stocks they do not own with the intention of buying them back at a lower price). They also maintain a high level of secrecy regarding their operations and strategies to maintain a competitive edge and are indeed limited to sophisticated investors due to the high risks and complex strategies involved, which require a certain level of knowledge and financial capacity to bear potential losses.

Which of the Following Is Correct