A Margin Call Is a Request from a Brokerage Firm

question 80

True/False

A margin call is a request from a brokerage firm for the investor to increase the cash in the account in order to bring the margin back up to the minimum level.

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Definitions:

Tax Loss Carryforward

A tax provision that allows a company to use its current loss towards future profits to reduce taxable income.

Taxable Income

The amount of income subject to taxation, after all deductions and allowances have been considered, according to the tax laws.

Reportable Segments

Portions of a business that can be separately identified by products and services or by geographical areas, providing relevant information to evaluate its financial statements.

Segmented Information

Segmented information refers to the breakdown of a company's financial reports into segments or divisions, allowing for a detailed analysis of each part of the business.