A loan from a stockbroker,based on the stocks and bonds in the customer's portfolio:
A)tends to be at a higher rate than a bank but easier to obtain.
B)can be "called" for payment in a matter of hours or days.
C)is for a maximum of $50,000.
D)has a fixed repayment schedule and must be paid within 90 days.

Question

Quizplus · Accepted Answer

A loan from a stockbroker, often referred to as a margin loan, can be "called" for payment quickly if the value of the securities in the portfolio falls below a certain level, requiring the borrower to either deposit more funds or sell some of the securities.

A Loan from a Stockbroker,based on the Stocks and Bonds