A Firm's Unique Technical Abilities and Reputation Are Distinctive Competencies

question 57

True/False

A firm's unique technical abilities and reputation are distinctive competencies.

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Definitions:

Margin

The difference between the selling price of a product or service and its cost, or the borrowed funds used to invest in securities.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses.

Initial Margin

The initial margin is the upfront investment required when buying on margin or entering a futures contract, acting as a security deposit for the trade.

Maintenance Margin

The minimum amount of equity an investor must maintain in a margin account after the purchase has been made, to keep the position open.