6.Short sales can only be made when:

A)   the last change in the market price has been upward.

B)   the last change in the market price has been downward.

C)   the last change in the market price has been either upward or downward.

D)   there has been no change in market price.

7.Regarding the technical points affecting the short sales of a stock, which of the following statements is TRUE?

A)   The short seller must pay all dividends due to the lender of the shorted stock.

B)   Stocks can only be shorted in a down market.

C)   The lender must also deposit margin money to guarantee the eventual repurchase of the stock.

D)   The seller must lend the securities to a broker before selling them.

8.An investor can profit from a stock price decline by:

A)   selling short.

B)   purchasing a call option.

C)   going long.

D)   placing a stop buy order.

9.Which of the following statements about selling a stock short is least likely accurate?

A)   The seller must return the securities at the request of the lender.

B)   The short seller gets the proceeds of the short sale.

C)   The seller must borrow the securities before selling them.

D)   The seller must inform their broker that the order is a short sale before completing the transaction.

10.A short seller:

A)   loses if the price of the stock sold short falls.

B)   does not receive the dividends.

C)   is only required to set up a margin account if trading at a price lower than the previous trade.

D)   often also places a stop loss order.

答案和详解如下：

6.Short sales can only be made when:

A)   the last change in the market price has been upward.

B)   the last change in the market price has been downward.

C)   the last change in the market price has been either upward or downward.

D)   there has been no change in market price.

The correct answer was A)

The uptick rule states that a short sale can only trade at a price higher than the previous trade.

7.Regarding the technical points affecting the short sales of a stock, which of the following statements is TRUE?

A)   The short seller must pay all dividends due to the lender of the shorted stock.

B)   Stocks can only be shorted in a down market.

C)   The lender must also deposit margin money to guarantee the eventual repurchase of the stock.

D)   The seller must lend the securities to a broker before selling them.

The correct answer was A)

The uptick rule states that stocks can only be shorted in an up market. The short seller must also deposit margin money to guarantee the eventual repurchase of the security. The seller must borrow the securities from a broker before selling them.

8.An investor can profit from a stock price decline by:

A)   selling short.

B)   purchasing a call option.

C)   going long.

D)   placing a stop buy order.

The correct answer was A)

Short selling provides a way for an investor to profit from a stock price decline. In order to sell short, the broker borrows the security and then sells it for the short seller. Later, if the investor can replace the borrowed securities by repurchasing them at a lower price, then the investor will profit from the transaction.

9.Which of the following statements about selling a stock short is least likely accurate?

A)   The seller must return the securities at the request of the lender.

B)   The short seller gets the proceeds of the short sale.

C)   The seller must borrow the securities before selling them.

D)   The seller must inform their broker that the order is a short sale before completing the transaction.

The correct answer was B)

Short sellers do not get the proceeds of the short sale, the proceeds must remain in the brokerage account along with the required margin deposit.

10.A short seller:

A)   loses if the price of the stock sold short falls.

B)   does not receive the dividends.

C)   is only required to set up a margin account if trading at a price lower than the previous trade.

D)   often also places a stop loss order.

The correct answer was B)

The short seller pays all dividends to the lender, loses if stock prices rise, and is required to post a margin account. Note: According to the uptick rule, a short sale can only trade at a price higher than the previous trade. A short seller often places a stop buy order to protect the short sale position from a rising market.