Which of the following is true concerning short sales of exchange-listed stocks?   Question 6 options:   You are likely to get a margin call when the stock price drops   The potential loss from short selling is limited to the proceeds from the short sale   Proceeds from the short sale must be kept on deposit with the broker until you close the position   Short-sellers do not need to post margin

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following is true concerning short sales of exchange-listed stocks?

 

Question 6 options:

 

You are likely to get a margin call when the stock price drops

 

The potential loss from short selling is limited to the proceeds from the short sale

 

Proceeds from the short sale must be kept on deposit with the broker until you close the position

 

Short-sellers do not need to post margin 

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