Apparent Authority Can Arise Where There Is an Undisclosed Principal

question 58

True/False

Apparent authority can arise where there is an undisclosed principal as well as where the principal is disclosed.

Understand the concept of open interest and its significance in the futures market.

Analyze the advantages and limitations of futures contracts over other financial instruments like forward contracts.

Grasp the operational aspects of futures trading, including margin requirements, daily settlement, and regulatory oversight.

Recognize the reasons and strategies behind the use of synthetic stock positions and other derivatives in trading and risk management.

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Definitions:

Deindividuation

A psychological state wherein an individual loses self-awareness and self-restraint, often occurring within group contexts, leading to behavior that is uncharacteristic of the individual’s norm.

Self-Awareness

The awareness of one’s own personality, emotions, motivations, and wishes.

Anonymity

The state of being unnamed or unacknowledged, often used to describe situations where individuals' identities are protected or not revealed.

Deindividuation Theory

A psychological theory suggesting individuals in groups may lose self-awareness and feel less responsible for their actions, often leading to norms being disregarded.