Which of the Following Is True

question 19

Multiple Choice

Which of the following is true?

• A)The Securities and Exchange Commission (SEC) set margin requirements for stock purchases.
• B)The current margin requirement is 50 percent although brokerage firms often set higher margin requirements and vary them based on the stocks being traded and the trading behavior of individual customers.
• C)The Securities and Exchange Commission (SEC) makes margin loans to customers in amounts above the margin requirement.
• D)All brokerage firms currently charge the same brokerage fees for executing transactions.

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Definitions:

Defendant's Liability

Refers to the obligation of a defendant in a legal case to compensate for loss or damage as determined by a court.

Reasonable Person Standard

A legal principle used to judge an individual's actions based on what a typical or reasonable person would do in similar circumstances.

Superior Skill

An elevated level of expertise or proficiency in a particular area or field.

Contributory Negligence

A defense in a tort claim where the plaintiff is found to have contributed to their own harm, potentially reducing or eliminating the defendant's liability.