When Opening a Margin Account with a Brokerage Firm, an Investor

question 19

Multiple Choice

When opening a margin account with a brokerage firm, an investor must sign a ______ agreement.

• A) commission-waiver
• B) hold-harmless
• C) limit order
• D) hypothecation

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Definitions:

Collective Bargaining

The process by which workers, through their unions, negotiate contracts with their employers to determine their terms of employment.

Union Shop

A workplace where employees are not required to join the union in order to be hired but must join shortly thereafter and remain members as a condition of employment.

Secondary Picketing

Picketing at other than the employer’s place of business.

Severance Pay

Compensation provided to an employee upon termination of employment, often depending on the length of service.