What Is the Rationale for Different Margin Requirements on Different

question 22

Essay

What is the rationale for different margin requirements on different types of securities? (For example, 50 percent on common stock, and 30 percent on bonds)

---

Definitions:

Ethical Behaviour

Conducting oneself according to the ethical beliefs and values that are generally upheld by both society and individuals.

Impartially and Fairly

Acting and making decisions without favoritism or prejudice, ensuring fairness and equality.

Cultural Relativism

The principle that an individual’s beliefs and activities should be understood by others in terms of that individual's own culture, emphasizing the idea that there is no universal standard to judge cultures by.

Ethnocentrism

The conviction that one's ethnic group or culture is superior by nature, usually paired with the habit of judging other cultures based on the standards of one's own.