A Transaction in Which an Investor Borrows to Buy Shares

question 50

Multiple Choice

A transaction in which an investor borrows to buy shares using the shares themselves as collateral is called ________.

• A) buying on margin.
• B) selling on margin.
• C) buying on loan.
• D) selling on loan.

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Definitions:

Declaration of Independence

A founding document of the United States, adopted on July 4, 1776, which declared the thirteen American colonies independent from British rule.

Guiding Principles

Fundamental norms, rules, or values that represent what is desirable and positive for a person, group, organization, or community, and help it to determine the rightfulness or wrongfulness of its actions.

Revolutionary Spirit

The energetic determination and radical mindset advocating for fundamental change in a society or government.

Shays's Rebellion

An armed uprising in Massachusetts (1786-1787), led by Daniel Shays, protesting economic injustices and the lack of government response to the economic plight of farmers.