If You Opt to Purchase Shares of Stock on Margin

question 41

Multiple Choice

If you opt to purchase shares of stock on margin rather than with cash, you will:

• A)decrease your maximum potential rate of return.
• B)increase your maximum potential rate of return.
• C)guarantee yourself a profit.
• D)eliminate any potential profit.
• E)have equal rates of return regardless of how the purchase is made.

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Definitions:

Switch Contacts

The conductive parts in a switch that come together to complete an electrical circuit when activated.

Coil

In programming and electrical engineering, it refers to a command used in ladder logic for activation or control of outputs.

Energized

Refers to a circuit or component that is under power or has electrical current flowing through it.

Efficiency-Wage Theory

The theory that employers pay workers a higher wage than the equilibrium wage to increase their productivity and efficiency.