Which One of the Following Statements Is True

question 76

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 to buy more stock and therefore earn larger returns.
• D)The margin requirement is established by the New York Stock Exchange.
• E)The current margin requirement is 25 percent.

---

Definitions:

Engineering Culture

The set of characteristics, norms, and practices that define the professional environment and approach of engineers and engineering teams.

Executive Culture

The attitudes, behaviors, and values that are prevalent among an organization's top management and leadership teams.

Organizational Culture

The collective way in which an organization's members interact and work, deeply influenced by shared values and traditions.

Autocratic

A leadership or governance style characterized by individual control over all decisions and little input from group members.