_________ _________ Cannot Be Observed

question 16

Short Answer

_________ _________ cannot be observed.

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Definitions:

Sell the Stock

The action of disposing of shares in a company.

Margin Call

A demand by a broker for an investor to deposit additional money or securities to cover possible losses.

Initial Margin

The upfront payment required to enter into a trading position as a guarantee against potential losses.

Maintenance Margin

The minimum account balance that an investor must maintain in a margin account after buying securities on credit, to protect brokers against deficits.