The Maintenance Margin Is the Minimum Margin to Which an Investment

question 131

True/False

The maintenance margin is the minimum margin to which an investment may fall before a margin call is placed.

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Definitions:

Cumulative

Relating to an amount that has been gathered or accumulated over time, often used in the context of dividends or other financial aggregates.

Preferred Stock

A type of equity security that has a higher claim on a company's assets and earnings than common stock, often paying fixed dividends.

Treasury Stock

Shares of a company's own stock that it has reacquired and held in its treasury.

Cumulative

Referring to the total amount accumulated over time, often used to describe interest, dividends, or other quantities that increase over periods.