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On August 8 of This Year, Brent Sold 500 Shares

Question 58

Multiple Choice

On August 8 of this year, Brent sold 500 shares of ADO stock for $24 a share. On September 6 of this year, he purchased 500 shares of ADO stock to cover his position. The transaction on August 8:


A) was a short sale.
B) was a margin trade.
C) was a wrap transaction.
D) created a long transaction.
E) was a pooling transaction.

Correct Answer:

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