Which of the following is not correct?
A) You pay interest on money borrowed to purchase stock on margin.
B) Selling short is selling stock borrowed from a brokerage firm.
C) A option is the right to buy or sell a stock at a predetermined price during a specified period of time.
D) A brokerage firm receives double its commission when stock is bought and sold when the investor is selling short.
E) If the stock price decreases and you purchased that stock on margin, you may receive a margin call.
Correct Answer:
Verified
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