Which One of the Following Best Describes the Term "Initial

question 63

Multiple Choice

Which one of the following best describes the term "initial margin"?

• A)Amount of money that must be deposited to open a margin account with a broker
• B)Amount of cash that must be paid to purchase a security on margin
• C)Amount of cash that must be paid when a broker issues a margin call
• D)Amount of money borrowed when a security is purchased
• E)Total loan amount offered to a customer by a brokerage firm to cover future purchases