The Relative Amount of Personal Funds,or Initial Equity,an Investor Can

question 32

True/False

The relative amount of personal funds,or initial equity,an investor can borrow from the broker when purchasing stocks on margin is called the initial margin requirement.

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Definitions:

Weighted-average

A method used in accounting and finance to calculate an average that takes into account the varying degrees of importance of the numbers in the dataset.

Conversion

The process of changing raw materials into finished goods, or the conversion of currencies, data, or resources from one form to another.

Equivalent Units

A principle applied in process costing that transforms units of incomplete production into an equivalent number of units as if they were fully completed.

Weighted-average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number before averaging.