Margin in a Futures Transaction Differs from Margin in a Stock

question 55

Multiple Choice

Margin in a futures transaction differs from margin in a stock transaction because

• A) stock transactions are much smaller
• B) delivery occurs immediately in a stock transaction
• C) no money is borrowed in a futures transaction
• D) futures are much more volatile
• E) none of the above

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Definitions:

Noxious Fumes

Harmful or poisonous gases, often produced by industrial processes or combustion, that can cause health problems or environmental damage.

Pollutants

Substances that contaminate air, water, or soil, potentially causing harm to human health, the environment, or property.

Trespass

Trespass is an unlawful intrusion or encroachment onto property owned or legally occupied by another, without permission or legal right.

Intentional Harm

The deliberate infliction of damage or injury on another person or their property.