Which of the following is false regarding margin?
A) Margin accounts typically allow for unlimited margin purchases.
B) The spread you pay above the call money rate typically declines as you borrow more.
C) You must sign a hypothecation agreement to purchase stocks on margin.
D) You own 100 shares of Stock X purchased with cash and purchase 100 shares of Stock Y on margin. If you do not cover a margin call, your broker can sell shares of Stock X until you meet the maintenance margin.
E) The initial margin requirement on government bonds is lower than the initial margin requirement on stocks.
Correct Answer:
Verified
Q50: You are buying $10,000 worth of stock
Q51: Short selling is:
A) a low risk strategy.
B)
Q52: You actively research macroeconomic factors and move
Q53: A brokerage account that provides money management,
Q54: Which of the following is false regarding
Q56: When the initial margin requirement is lowered
Q57: A brokerage account in which the broker
Q58: A brokerage account in which the account
Q59: You actively research market sectors to determine
Q60: Shares for short sales are
A) borrowed from
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