A Margin Call from a Broker Means That the Investor

question 1

True/False

A margin call from a broker means that the investor is required to provide more collateral (cash or stocks)or sell the stock.

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Definitions:

Groupthink

A psychological phenomenon in which the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Conflict

A situation where interests, needs, goals, or values of involved parties interfere with one another, often requiring management or resolution.

Risky Shift

The tendency for groups to make riskier decisions than individuals would, often due to diffusion of responsibility or pluralistic ignorance.

Elective Course

An elective course is a class chosen by a student from a number of optional subjects or courses in a curriculum, allowing customization of an educational program according to interests or career goals.