The Term "Market" Refers to

question 45

Multiple Choice

The term "market" refers to

• A) physical structures only.
• B) locations where buyers and sellers physically meet.
• C) any arrangement that enables buyers and sellers to get information and trade with one another.
• D) trading arrangements that have been approved by the government.

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Definitions:

Initial Margin

The minimum amount of funds required to open a position in the futures market, intended to cover potential losses.

Maintenance Margin

The minimum amount of capital that must be maintained in a margin account after a purchase or trade, to cover the risk of loss.

Margin Call

A requirement from a broker for an investor to add more cash or securities to their account to mitigate potential losses.

Short 100 Shares

The action of borrowing 100 shares of a stock to sell them with the expectation of buying them back later at a lower price.