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Match the Meanings with Their Correct Suffixes

question 60

Multiple Choice

Match the meanings with their correct suffixes.

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Definitions:

Margin

Describes securities purchased with money borrowed from a broker. Current maximum allowed margin on stock purchases is 50%.

Sell the Stock

An action where an investor disposes of their ownership in a corporation through the sale of its shares.

Maintenance Margin

The minimum equity amount that must be maintained in a margin account after a purchase has been made, to cover the risk of the investment.

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

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