Solved

Which of the Following Statements Is Incorrect

Question 18

Multiple Choice
Which of the following statements is incorrect?
A) In a short sale, investors place an order to sell a stock that they do not own.
B) Investors sell a stock short when they anticipate that its price will rise.
C) When investors sell short, they will ultimately have to provide the stock back to the investor from whom they borrowed it.
D) Short-sellers must make payments to the investor from whom the stock was borrowed to cover the dividend payments that the investor would have received of the stock had not been borrowed.

Which of the following statements is incorrect?


A) In a short sale, investors place an order to sell a stock that they do not own.
B) Investors sell a stock short when they anticipate that its price will rise.
C) When investors sell short, they will ultimately have to provide the stock back to the investor from whom they borrowed it.
D) Short-sellers must make payments to the investor from whom the stock was borrowed to cover the dividend payments that the investor would have received of the stock had not been borrowed.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents