Which of the Following Is False Concerning Margin

question 11

Multiple Choice

Which of the following is false concerning margin?

• A) The Investment Dealers Association of Canada sets the margin requirement.
• B) An initial margin of 100 percent is basically the same as a cash purchase.
• C) All financial products on the exchanges can be traded with margin accounts.
• D) Different margin requirements apply to different types of securities.
• E) Securities purchased on margin must be left with the brokerage firm in street name.

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Definitions:

Incentive Payout

A form of performance-based compensation where employees receive additional pay or rewards for meeting or exceeding specific goals or benchmarks.

Base Pay

The initial salary paid to an employee, not including any benefits, bonuses, or overtime that may be additionally compensated.

Technical/Professional

Relating to jobs or employees with specialized knowledge or skills, often requiring specific education and training.

Performance-Based Pay

A compensation system where employees' pay is based on their performance, often measured against predetermined goals or benchmarks.