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Question

Which of the following statements is incorrect?

a. In a short sale, investors place an order to sell a stock that they do not own.

b. Investors sell a stock short when they anticipate that its price will rise.

c. When investors sell short, they will ultimately have to provide the stock back to the investor from whom they borrowed it.

d. Short-sellers must make payments to the investor from whom the stock was borrowed to cover the dividend payments that the investor would have received if the stock had not been borrowed.

Answer

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