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

---

Definitions:

Fragile X Syndrome

A genetic condition that causes a range of developmental problems including learning disabilities and cognitive impairment, linked to a mutation of the FMR1 gene on the X chromosome.

Gene

A unit of heredity that is transferred from a parent to offspring and is held to determine some characteristic of the offspring.

X Chromosome

One of the two sex chromosomes, X and Y, with the X chromosome carrying genes essential for the development of female physical characteristics and playing a role in male development as well.

Brain Development

The process by which the nervous system, including the brain, grows, matures, and learns, starting from before birth and continuing into adulthood.