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Which statements regarding margin buying and short selling are correct? When brokers increase the initial margin, investors would need to put in less cash to
Which statements regarding margin buying and short selling are correct?
When brokers increase the initial margin, investors would need to put in less
cash to open the account.
Shortselling investors have the potential to experience unlimited loss.
When brokers increase the maintenance margin, investors would receive margin
calls later.
When brokers increase the initial margin, investors' leverage effect would be
smaller.
The leverage effect in margin buying and short selling could multiply the return
and minimize the risk.
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