The "Lockup" Problem Involved in Rebalancing Refers to the Problem

question 24

Multiple Choice

The "lockup" problem involved in rebalancing refers to the problem that:

• A) retirement accounts cannot be liquidated prior to retirement.
• B) trust accounts cannot be traded without incurring administrative costs.
• C) taxable accounts are subject to capital gains taxes if appreciated assets are sold.
• D) illiquid fixed income securities must be held until maturity.

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Definitions:

Myelin Sheath

A fatty layer that encases the axons of some nerve cells, facilitating the rapid transmission of nerve impulses.

Axon

A long, narrow outgrowth of a neuron’s cell body that lets the neuron transmit information to other neurons.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems involved in muscle activation and memory among other functions.

Antagonist

A substance that blocks or inhibits the effect of a neurotransmitter or hormone, or a character in conflict with the protagonist in literature.