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When an Investor Trades on Margin,he or She Borrows from the Broker

question 28

True/False

When an investor trades on margin,he or she borrows from the broker some of the funds needed to purchase securities.


Definitions:

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision-making but do not guarantee a correct outcome.

Positive Mood

A state of well-being and contentment that enhances one's outlook and cognitive functions.

Experientially

Relating to or derived from experience or the process of learning through direct experience.

Metaphor

A figure of speech in which a term or phrase is applied to something to which it is not literally applicable in order to suggest a resemblance.

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