The ______________________________ Is the Minimum Amount of Equity the Investor

question 82

Multiple Choice

The ______________________________ is the minimum amount of equity the investor needs in her account relative to the market value of her stock.

• A)initial margin requirement
• B)circuit breaker
• C)maintenance margin requirement
• D)market risk premium

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Quantity

The amount or number of a material or product which is available, produced, or consumed.

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, intended to prevent prices from falling too low.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, resulting in no surplus or shortage.