Accounts & CustomersCâu 63 / 125
In a short margin account, the customer profits when:
a.The price of the borrowed and sold security declines
b.The price of the security rises
c.Interest rates fall
d.The company increases its dividend
Giải thích
A short seller borrows shares, sells them, and hopes to buy them back later at a lower price. The position profits when the security's price declines. Because a stock's price can rise without limit, short positions carry theoretically unlimited loss potential and are subject to margin requirements.
Luyện miễn phí toàn bộ 125 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A customer buys $20,000 of marginable stock in a margin account. Under Regulation T at 50%, how much must the customer deposit?
- FINRA's minimum maintenance margin requirement for a long stock position is:
- A customer holds long stock with a current market value of $40,000 and a debit balance of $32,000. Using the 25% maintenance requirement, what is the status of the account?
- A traditional Individual Retirement Account (IRA) offers which primary tax feature?
- A Roth IRA differs from a traditional IRA primarily because a Roth:
- A withdrawal from a traditional IRA before age 59 1/2 is generally subject to:
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