Question 8 Which one of the following statements is true regarding selling short? In a short transaction, if the stock increases in value, the investor makes money. When you sell short, you buy today, knowing you must sell or cover your short transaction, at a later date. Selling short is selling stock that has been borrowed from a brokerage firm. When an investor buys stocks and assumes they will increase in value, he or she is using a procedure called selling short. To make money in a short transaction, you must hold on the sto for at least one year. Which one of the following statements is true? If a cash dividend is declared by the board of directors, each stockholder will receive a different dollar amount per share. Corporate dividends are always paid in cash. Stockholders receive a tax break on dividend income. Board members are appointed by a company's management. Investors should be concerned about the corporation's ability to earn profits and pay dividends in the future. c Previous