If You Buy or Sell with This Technique, You May

question 126

Multiple Choice

If you buy or sell with this technique, you may be required to pledge additional collateral or cash for a loan.

• A) A call option
• B) Direct investing
• C) Buying on margin
• D) A put option
• E) Selling short

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Definitions:

Income Statement

A financial statement that reports a company's financial performance, including revenues, expenses, and profit, over a specific period.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations section is used rather than being derived from the income statement.

Prepaid Expenses

Costs paid for in advance of their use or consumption, recorded as assets on a balance sheet and gradually expensed over the period of use or benefit.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.