When a Brokerage Firm Demands More Collateral from Investors Who

question 27

Multiple Choice

When a brokerage firm demands more collateral from investors who have borrowed from the brokerage firm to buy stocks, it is making a

• A)margin call.
• B)short sale.
• C)proxy fight.
• D)hedge.

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Definitions:

Obverses

Statements or propositions that are opposite or converse to each other, often involving a change in modality or quality while retaining the same subject and predicate.

Contrapositive

A logical statement obtained by negating and swapping the hypothesis and conclusion of a conditional statement.

Proposition

A statement or assertion that expresses a judgment or opinion; in logic, it is a declarative sentence that is either true or false.

Relationship

How two or more notions, entities, or persons have a bond between them, or the existence of such a bond.