A Small Commitment Fee Needed to Purchase a Futures Contract

question 52

Multiple Choice

A small commitment fee needed to purchase a futures contract is called a _____.

• A) margin
• B) speculator
• C) short position
• D) long position
• E) marked-to-market

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Definitions:

Shares Outstanding

Shares outstanding refer to the total number of shares of stock that are currently owned by investors, including both public and institutional ownership.

Market Price

The prevailing rate for transactions involving assets or services in an economic marketplace.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability per share.

Merger Premium

The additional amount an acquirer pays over the current market price of a target company's shares during a merger or acquisition.