Indicate whether the following statements are true or false with respect to characteristics of stock options.
Definitions:
Short Sale
A transaction where an investor borrows a security and sells it on the open market, planning to buy it back later at a lower price.
Maintenance Margin
The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to continuing holding the position.
Secondary Markets
Markets where investors buy and sell securities or assets from other investors, rather than from issuing companies directly.
Original Issue
The first issuance of a security or financial instrument to the public or to investors.
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