Which of the Following Is False

question 30

Multiple Choice

Which of the following is false?

• A)The margin requirement is the percentage of a stock purchase that can be borrowed as opposed to being paid in readily available funds.
• B)The margin requirement is always equal to the maintenance margin requirement.
• C)The maintenance margin requirement is the minimum amount of equity the investor needs in his account relative to the market value of his stocks.
• D)In a declining market, margin buying magnifies losses.

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Definitions:

Buyer's Household Members

Individuals living in the same residence as the buyer, often considered by retailers for marketing or loyalty purposes.

Waive Warranties

involves the voluntary relinquishment of certain guarantees or assurances, typically regarding the condition or quality of goods and services, by a buyer or recipient.

Implied Warranties

Unspoken, unwritten assurances that a product or service meets certain quality standards and is fit for the purpose sold, even though not expressly stated.

Express Warranties

Explicit assurances provided by the seller about the quality, performance, or condition of a product.