Which One of the Following Is a Major Advantage of Margin

question 109

Multiple Choice

Which one of the following is a major advantage of margin trading?

• A) increase in potential diversification
• B) increase in potential profits on a percentage basis
• C) possibility of increased gains on a dollar basis
• D) interest free loans

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Definitions:

Cigarettes

Thin cylinders of finely cut tobacco rolled in paper, intended for smoking, associated with health risks.

Experiment

A process in which an investigator, called an experimenter, devises two different experiences for participants and then studies and compares the outcomes.

Middle Adulthood

A stage of life, typically defined as the period between ages 40 to 65, characterized by stability, maturity, and increased responsibility.

Decline

A gradual decrease in quality, quantity, or importance of something over time.