Margin Requirements Tell the Minimum Amount of Cash an Investor

question 13

True/False

Margin requirements tell the minimum amount of cash an investor must put up when borrowing from a bank or brokerage firm to purchase stock.

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Definitions:

Right to an Attorney

The legal entitlement of individuals accused of crimes to have legal representation, whether provided by themselves or, if they are unable to afford one, appointed by the court.

Insider Trading

Conducting illicit trades on the stock exchange for individual advantage by using confidential data.

Tipping

The practice of giving extra money to service workers, over the basic price of the service, as a gesture of appreciation for their work.

Criminal Extortion

involves obtaining something, especially money, through force or threats, and is considered a criminal act.