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What Is "Principle 21

question 38

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What is "Principle 21"?

Grasp the importance of social networks in aspects such as employment and social inclusion or exclusion.
Analyze the significance of group identities, including in-group vs. out-group dynamics, and their impacts on perceptions and behaviors.
Identify and explain the concepts of social influence, conformity, and groupthink within various types of groups.
Understand the importance of reference groups in shaping individual's self-perception, ambitions, and decisions.

Definitions:

Pork Bellies

Futures contracts that were historically traded on the commodity exchanges, representing 40,000 pounds of frozen, trimmed bellies of hogs, which are used to make bacon.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to continue holding a position, set by a brokerage to prevent excessive borrowing based on volatile market values.

Margin Call

A margin call occurs when the value of an investor's margin account falls below the broker's required minimum level, prompting the investor to either deposit more funds or sell assets to cover the shortfall.

Margin Deposit

A deposit required by a broker from a client when they borrow from the broker to buy securities, serving as collateral for the loan.

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