Stuart Purchased 300 Shares of Microsoft Stock Which He Has

question 9

Multiple Choice

Stuart purchased 300 shares of Microsoft stock which he has pledged to his broker as collateral for the loan in his margin account.This process of pledging securities is called:

• A)margin calling.
• B)hypothecation.
• C)leveraging.
• D)maintaining the margin.
• E)street securitization.

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Definitions:

Blocking

A learning phenomenon where an already established association to a stimulus inhibits the formation of an association to a new stimulus.

Classical Conditioning

An educational method where an association is made between a stimulus found in the environment and a stimulus that occurs naturally.

Strong Phobia

An intense, irrational fear of a specific object, scenario, or activity that leads to significant anxiety and avoidance behavior.

Motorcycles

Two-wheeled vehicles powered by an engine, designed for individual or small number passenger transport.