Anjali's Stockbroker Called to Inform Her of a Margin Call

question 244

Multiple Choice

Anjali's stockbroker called to inform her of a margin call that requires that she pay $1,000. This indicates that the value of Anjali's stock has

• A) just split.
• B) decreased.
• C) increased.
• D) changed causing the Federal Reserve to increase the margin rate.

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Definitions:

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve from an investment, considering the risk involved.

Net Operating Income

A financial metric indicating the income generated from a company's core business operations, excluding deductions of taxes and interest.

Turnover

The rate at which inventory or assets are sold and replaced over a certain period of time, indicating the efficiency of sales or the usage of assets.

Investment Opportunity

A potential venture or project that promises returns or profits to the investor.