Lupe's Stockbroker Called to Inform Lupe of a Margin Call

question 394

Multiple Choice

Lupe's stockbroker called to inform Lupe of a margin call that requires that she pay $1,000.This indicates that the value of Lupe's stock has:

• A)just announced a stock split.
• B)decreased.
• C)increased.
• D)changed causing the Federal Reserve to increase the margin rate.

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Definitions:

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Reasonable Standard Of Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

Societal Need

Essential requirements that are necessary for the well-being and functioning of society as a whole.

Expectations

Expectations refer to the beliefs or forecasts about future events or outcomes, often based on past experiences or evidence.