Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When purchasing common stock on margin, the cash an investor deposits into a margin account to purchase shares is called the _____, while the _____

When purchasing common stock on margin, the cash an investor deposits into a margin account to purchase shares is called the _____, while the _____ is the minimum proportion of equity an investor must keep in his margin account.

A. initial margin; maintenance margin
B. margin call; initial margin
C. maintenance margin; initial margin
D. initial margin; margin call

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Short Selling

Authors: Greg N. Gregoriou

1st Edition

0123877245, 978-0123877246

More Books

Students also viewed these Finance questions