The Volcker Rule Proposed That There Should Be a Key

question 91

True/False

The Volcker Rule proposed that there should be a key restriction in the legislation to limit the ability of banks to trade on their own accounts,termed proprietary trading.

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Definitions:

EPS

Earnings per share. A firm’s earnings stated on a per-share outstanding basis. An important measure of business performance in the stock market.

Equity

Ownership interest in a company, represented by shares that entitle holders to a share of the company's profits.

Financial Leverage

The use of borrowed money to multiply financial performance in terms of ROE and EPS.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly a right to vote at shareholders' meetings.