All of the following statements regarding the short sale of a listed security are true EXCEPT: A) the buyer must be advised that he is purchasing borrowed shares.
B) a short sale can be effected at any time in the trade sequence.
C) short sales may take place at the opening.
D) short sales may take place at the closing.

the buyer must be advised that he is purchasing borrowed shares

Explanation:

The statements regarding the short sale of a listed security that are true are:

• a short sale can be effected at any time in the trade sequence.

• short sales may take place at the opening.

• short sales may take place at the closing.

It should be noted that at anytime in trade sequences, short sales can be effected either at the opening or during the closing. Also, buyers are not told that the shares that they're buying being represent borrowed shares.

Therefore, option A is the correct answer.