Amy and Bob have decided to borrow a portion of the purchase price of stocks from their broker.They will then have a ________ account.
A)cash
B)round lot
C)margin
D)debtor
E)combination

Question

Quizplus · Accepted Answer

When someone borrows a portion of the purchase price of stocks from their broker, they open a margin account. This allows them to buy more stocks than they could with just their own funds. In a margin account, the broker will lend money to the investor, using the investor's stocks as collateral. Therefore, Amy and Bob will have a margin account since they are borrowing money from their broker.

Amy and Bob Have Decided to Borrow a Portion of the Purchase