Question
The term initial margin means________________________? A) Amount of cash that must be deposited to open a margin account with a broker and is used to
The term "initial margin" means________________________?
A) Amount of cash that must be deposited to open a margin account with a broker and is used to pay fees.
B) Amount of cash that must be added to the account when a broker issues a margin call
C) Amount of money borrowed when a security is purchased and paid back when security is sold
D) Total loan amount set up by the brokerage firm, and offered to all customer of this brokerage firm. This loan amount is set up by the SEC.
E) The proportion of a transactions value a customer must pay to initiate the transaction, with the remainder borrowed from broker
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