What Is a Margin Call

question 39

Essay

What is a margin call?

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Definitions:

Creative Destruction

A concept in economic theory that refers to the process by which new innovation leads to the demise of existing structures and creates new opportunities.

Dominant Firms

Firms that have a major share of the market sales in a particular industry, giving them the power to influence the market's total output and price levels.

New Products

Items that have been recently introduced to the market, offering innovative solutions or improvements over existing products.

Interest-Rate Cost-Of-Funds

Represents the interest rate that banks or other financial institutions pay for the funds that they use in their operations, including deposits and loans from other institutions.