Examlex
Which of the following statements is TRUE?
Margin Call
A demand by a broker for an investor to deposit additional money or securities to cover possible losses.
Initial Margin
The upfront payment required to enter into a trading position as a guarantee against potential losses.
Maintenance Margin
The minimum account balance that an investor must maintain in a margin account after buying securities on credit, to protect brokers against deficits.
Private Placements
The sale of stocks, bonds, or securities directly to private investors rather than through a public offering in the capital markets.
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