If the Initial Margin Requirement Is 50% and You Have

question 140

Multiple Choice

If the initial margin requirement is 50% and you have $5,000 in your brokerage account, you may purchase an additional __________ worth of securities on margin.

• A)$2,000
• B)$2,500
• C)$10,000
• D)none of the above

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Definitions:

Circular Reasoning

A logical fallacy in which the conclusion of an argument is used as a premise of the same argument.

Argumentum Ad Hominem

A logical fallacy where an argument is countered by attacking the character, motive, or other attributes of the person making the argument, rather than addressing the substance of the argument itself.

Sarbanes-Oxley Act

A United States federal law enacted in 2002 that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, aimed at protecting investors from fraudulent financial reporting.

Code of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.