Maya Is a Stockbroker

question 15

Multiple Choice

Maya is a stockbroker.Nora believes that the price of OK Goods,Inc.(OKGI) ,a widely traded stock,is going to increase substantially.Through Maya,Nora buys 500 shares of OKGI at $10 per share,but the price soon drops to $2.Nora can successfully recover from Maya

• A)nothing.
• B)the amount of the purchase price.
• C)the amount of the purchase price plus the expected increase.
• D)the amount of the purchase price plus the unexpected decrease.

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Definitions:

Fluctuates

Refers to the variation in the value or level of a variable over time.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Capacity Utilization Rate

The percentage of potential economic output that is actually realized, indicating how fully a country or enterprise is using its productive resources.

Margin Rate

Typically refers to the interest rate charged by brokers for borrowing funds to invest in securities.