Which of the Following Statements Is Not True

question 118

Multiple Choice

Which of the following statements is not true?

• A)When buying stock on margin, an investor borrows part of the money necessary to buy a particular stock.
• B)Usually, the brokerage firm lends the money or arranges for the loan in a margin transaction.
• C)Investors buy on margin because doing so offers them the potential for greater profits.
• D)The margin requirement is set by the exchanges.
• E)The current margin requirement is identical for all exchanges.

---

Definitions:

Networking

The building of relationships and sharing of information with colleagues who can help managers achieve the items on their agendas.