Which One of the Following Statements Is True

question 136

Multiple Choice

Which one of the following statements is true?

• A) When buying stock on margin, an investor borrows stock from the brokerage firm.
• B) Usually, a bank arranges for the loan in a margin transaction.
• C) Investors buy on margin because doing so offers them the potential for greater profits.
• D) The margin requirement is established by the New York Stock Exchange.
• E) The current margin requirement is 25 percent.

---

Definitions:

Key Competencies

Essential abilities and skills that an individual needs in order to be successful in a job or task.

Managerial

Pertaining to the activities, responsibilities, and skills related to managing an organization or a part of it.

Leadership Roles

Positions within an organization tasked with guiding, directing, and influencing others towards achieving collective goals.

Directs

Commands or instructions given with authority to guide or control actions or decisions.