Explanation:
A short squeeze is most likely when:
Option A is therefore false because it says a short squeeze is most likely when short interest is low and the price is dropping.
The other statements are true:
Ultimate access to all questions.
No comments yet.
Q-164.4. With respect to short sales, EACH of the following is true EXCEPT:
A
A short squeeze is most likely when the short interest (or short interest ratio) is low and the security price is dropping
B
A loss in a short position leads to larger exposure such that, unlike a long position, a short position implies an inverse relationship between performance and exposure
C
While a long position has a limited downside, a short position has an unlimited downside
D
The SEC abolished the uptick rule in 2007, but recently adopted the “alternative uptick rule” which is triggered if a security declines by 10% during the day