Which of the following statements about short sales are TRUE?
In a short sale, an investor sells securities she does not own.
Risks can be minimized by confining short sales to cash accounts rather than margin accounts.
In a short sale, an investor hopes that the price of a security will go down.
A) II and III.
B) I, II and III.
C) I and III.
D) I and II.
Answer: C) I and III.