When Your Equity Position in a Security Is Less Than

question 38

Multiple Choice

When your equity position in a security is less than the required amount, your brokerage firm will issue a:

• A)margin call.
• B)margin certificate.
• C)cash certificate.
• D)limit order.
• E)leverage call.

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Definitions:

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Competitive Level

The degree of competition within a market, characterized by the number of firms, product differentiation, and barriers to entry.

Producer Net Gains

The total benefits or earnings that producers receive from selling goods or services, over and above their costs of production.

Marginal Revenue

The additional income derived from selling one more unit of a good or service.