Which of the following statements about short selling is (are) true?
I. Short selling requires an initial margin deposit.
II. Short sellers begin a transaction with a sale and end it with a purchase.
III. Short sellers profit when the stock prices rises.
IV. Short selling can be a risky strategy.
A) IV only
B) I and II only
C) I, II and IV only
D) I, II, III and IV
Answer: C
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