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Zoe Is Preparing for Her History Midterm Tomorrow

question 41

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Zoe is preparing for her history midterm tomorrow. She has just finished reviewing her notes and feels confident that she knows the material well. One of the many things she can do to prepare physically is


Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account.

Margin Call

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

Initial Margin

The minimum amount of equity that must be provided by an investor when purchasing securities on margin, acting as a down payment on the purchase.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to continue holding an investment, after initiating a position.

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