Solved

The Difference Between a Cash Account and a Margin Account

Question 61

Multiple Choice

The difference between a cash account and a margin account is:


A) A margin account allows the investor up to five days to pay for the entire purchase
B) A cash account gives the investor a 2% discount if they pay with in 10 days,or the investor has to pay the entire amount with in thirty days (2/10 net 30)
C) A margin account allows the investor to borrow a percentage of the purchase price from the brokerage firm
D) A margin account is less risky to the investor
E) a cash account requires the stock be kept registered in street name,a margin account allows the securities to be delivered to the customer.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents