What Additional Risk Is Involved When Buying Stock on Margin

question 32

Multiple Choice

What additional risk is involved when buying stock on margin?

• A)The interest rate charge
• B)The leverage
• C)A margin call
• D)The amount borrowed

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Definitions:

Business Suit

A set of garments, typically including a jacket and trousers or a skirt, worn in professional settings.

Patterned Hose

Hosiery that has decorative designs, such as stripes, dots, or other motifs, woven into or printed on the fabric.

Nervous Mannerism

Behaviors or actions displayed by individuals when they are anxious or stressed.

Verbal Spacers

Filler sounds or words, such as "um," "like," or "you know," used by speakers during conversation to pause for thought without breaking the flow of speech.