The Initial Margin Is the Minimum Amount of Margin That

question 29

True/False

The initial margin is the minimum amount of margin that investors must maintain as a percentage of the stock's value without receiving a margin call.

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Definitions:

Journal Entry

A journal entry is a record of a business transaction in the accounting books, detailing the financial effects of that transaction.

Net Income

The company's net income following the deduction of all costs and taxes from its earnings.

Income-Sharing Ratio

The proportionate distribution of profit or loss among partners in a partnership according to their agreed percentages.

Net Assets

The total assets of a company or individual minus all its liabilities, representing the owners' or shareholders' equity.