When an Investor Trades on Margin,he or She Borrows from the Broker

question 28

True/False

When an investor trades on margin,he or she borrows from the broker some of the funds needed to purchase securities.

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Definitions:

Apparent Authority

The appearance or impression given by the actions of a person that they have the authority to act on behalf of another or an entity, leading others to reasonably believe such authority exists.

Express Agency

A relationship where the agent is explicitly given the authority to act on behalf of the principal, often through a written or verbal agreement.

Obligation

An obligation, either ethical or legal, to take a certain action or to avoid taking a particular action.

Terminates

Marks the end or conclusion of something, such as a contract, agreement, or employment.