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Annabelle, a trader in securities, works for a national securities firm.She occasionally buys and sells securities for her personal account.On May 10, 2018, she purchased 100 shares of Acorn, Inc.common stock for a total of $40,000.She sold all of those shares for a total of $46,000 on July 11, 2019.What was the amount and nature of her gain or loss from this transaction? What could she have done to change this result?
Convergence
The phenomenon where the futures price of a commodity tends to approach the spot price as the contract expiration date nears.
Margin
The practice of buying an asset by using funds borrowed from a broker, often used in stock trading to leverage investments.
Futures Contract
A standardized legal agreement to buy or sell a specific commodity or financial instrument at a predetermined price at a specified time in the future.
Zero Coupon Interest Rate
An interest rate that applies to a bond or loan that does not pay periodic interest, only paying the face value at maturity.
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