If an Individual Buys Stock on Margin and Its Price

question 38

Multiple Choice

If an individual buys stock on margin and its price rises,​

• A) ​the investor must put up additional collateral
• B) ​the investor must pay tax on the unrealized gain
• C) ​the investor must pay interest on the borrowed funds
• D) ​the investor may take delivery of the stock

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Definitions:

Sex Chromosomes

Chromosomes that determine the genetic sex of an organism, typically denoted as XX for females and XY for males in many species.

Gonads

The primary reproductive organs in animals, which in males are the testes and in females are the ovaries, responsible for producing gametes and hormones.

Sexual Development

The process of physical and emotional changes that occur as a person matures sexually, including puberty and sexual identity formation.

Sex Glands

Organs that produce sex hormones and gametes; for males, this refers to the testes, and for females, the ovaries.