Which of the following statements is not true?
A) When an investor buys stocks and assumes they will increase in value, he or she is using a procedure called buying long.
B) Selling short is selling stock that has been borrowed from a stockbroker or brokerage firm.
C) When you sell short, you buy today, knowing that 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 loses money.
E) To make money in a short transaction, you must be correct in predicting that a stock will decrease in value.
Correct Answer:
Verified
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