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:

Ratio Scale

A quantitative scale of measurement that has a true zero-point and units of equal intervals, allowing for the comparison of absolute magnitudes of numbers.

Interval Scale

A type of measurement scale that represents both the order of data points and the exact differences between them, but without a true zero point.

Histogram

A graphical representation using bars of various heights to show the distribution of data over a continuous interval or certain period of time.

Research Hypotheses

Proposed explanations or predictions that are based on limited evidence and can be tested through further investigation.