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Which of the Following Is False

Question 77

Multiple Choice

Which of the following is false?


A) The margin requirement is the percentage of a stock purchase that can be borrowed as opposed to being paid in readily available funds.
B) The margin requirement is always equal to the maintenance margin requirement.
C) The maintenance margin requirement is the minimum amount of equity the investor needs in his account relative to the market value of his stocks.
D) In a declining market, margin buying magnifies losses.

Correct Answer:

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