Question
Select all of the following statements that are true in regards to margin calls: 1.Short sellers have little to no effect on price and fluctuation
Select all of the following statements that are true in regards to margin calls:
1.Short sellers have little to no effect on price and fluctuation within the market.
2.Liquidation of investments may be forced if an individual is unable to deposit the funds needed to satisfy a margin call.
3.When a margin call occurs, the investor must choose to either deposit more money in the account or sell some of the underlying assets held in their account.
4.Margin calls tend to be made if an investment is not deemed risky enough to be profitable.
5.A margin call is usually an indicator that at least one of the securities held in the margin account has increased in value.
6.Margin calls are demands for additional capital or securities to bring a margin account up to the required minimum balance.
7.Banks who do not hedge their risk will be better off if a margin call is unable to be met.
8.If one bank issues a margin call on an investment, other involved banks are likely to follow suit.
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