A(n)____ from a Broker Requires the Investor to Put Up

question 41

Multiple Choice

A(n) ____ from a broker requires the investor to put up additional collateral.

• A)maintenance margin
• B)initial margin
• C)margin call
• D)trading halt

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Definitions:

Unrealized Gain

Represents the increase in value of an investment or asset that has not yet been sold for cash.

Commercial Substance

A concept in accounting that a transaction has commercial substance if it significantly changes the economic circumstances of the entities involved.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Fair Value

A valuation method that approximates the amount for which an asset could be bought or sold in a current transaction between participants at arm's length.