Which of the following statements is not true?
A)When buying stock on margin, an investor borrows part of the money necessary to buy a particular stock.
B)Usually, the brokerage firm lends the money or arranges for the loan in a margin transaction.
C)Investors buy on margin because doing so offers them the potential for greater profits.
D)The margin requirement is set by the exchanges.
E)The current margin requirement is identical for all exchanges.

Question

Quizplus · Accepted Answer

The statement that the current margin requirement is identical for all exchanges is not true. Each exchange sets its own margin requirements, which may vary depending on the type of security being traded and market conditions.

Which of the Following Statements Is Not True