During a Margin Call, the Investor Is Required to Invest

question 67

True/False

During a margin call, the investor is required to invest addition cash to increase the position's equity..

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Definitions:

Par Value

The nominal or face value of a bond or stock as stated by the issuer, which is often the amount paid out at maturity for bonds.

Increase In Value

The appreciation or upward adjustment in the price or worth of an asset over time.

Maturity

The date on which the principal amount of a bond, loan, or other financial instrument becomes due and is to be paid back.

Zero-coupon Bond

A bond that does not make periodic interest payments during its life and is instead sold at a deep discount from its face value, with the full face value being paid at maturity.