A Margin Account

question 58

Multiple Choice

A margin account

• A) can be opened by any investor who wants to purchase securities by charging them to his/her credit card.
• B) allows an investor to borrow one hundred percent of the cost of the securities purchased.
• C) allows an investor to borrow a portion of the purchase price at a reasonable rate of interest.
• D) is permitted only in wrap accounts.

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Definitions:

Mislabels

The incorrect or misleading labeling of products, often leading to confusion, potentially dangerous situations, or violation of regulations.

Fraud

A deliberate deception practiced to secure unfair or unlawful gain, typically involving financial or personal gain.

Product Liability

The legal responsibility of manufacturers and sellers to compensate for injury or damage caused by defective products.

Risk-Utility Analysis

A process used to evaluate the safety of a product by weighing the risks associated with its use against its utility or benefits.