Examlex
Which of the following is FALSE regarding cap rates?
Initial Margin
The portion of the purchase price that an investor must deposit as collateral when buying on margin, to cover credit risk.
Rate of Return
The financial gain or loss encountered on an investment throughout a set period, calculated as a percentage of the investment’s initial outlay.
Bid-Asked Spread
The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for an asset.
Broker's Commissions
Fees or payments made to a broker for executing a transaction or providing specialized services.
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