How does a cash account differ from a margin account?
Answer to relevant QuestionsWhat is a maintenance margin requirement? Assume that you bought 100 shares of Acme, Inc., at $100 a share. If the maintenance margin requirement is 0.30, at what price would your broker give you a margin call? What does a ...1. Assuming the Delaneys would pay 12 percent a year on the broker’s loan associated with the margin account, determine their net annual return (expressed as a percentage of the amount they invest) if their stocks paid a ...Drew Dugan is considering investing in one of three securities listed in the following table. Drew isn’t familiar with return or risk and would like you to explain the data. Also, he would like your opinion on which ...Explain dollar cost averaging and why it may be helpful for certain investors. What is a dividend reinvestment plan, and what advantage does it offer? Also briefly explain several other routine investment techniques. Explain a stock dividend and further explain if you would prefer it to a cash dividend. What are stock splits, and how desirable are they?
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