A Margin Requirement

question 35

Multiple Choice

A margin requirement:

• A)limits the amount an investor can spend on stocks.
• B)limits the amount a buyer can borrow to buy stocks.
• C)limits the amount of stock a firm can issue.
• D)is the ratio of stocks to total assets held by an individual.

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Definitions:

Physical Possession

The direct, physical control or holding of an object or property by an individual or entity.

Bill of Lading

A legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being transported.

Document of Title

A legal document evidencing the right to control the disposition of goods, such as a bill of lading or warehouse receipt.

Storage of Goods

The act of keeping goods in a space designated for their preservation or until they are sold or distributed.