a) Define broker and market maker (dealer). Explain the key differences between these two roles. (10...

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a) Define broker and market maker (dealer). Explain the key differences between these two roles. (10 marks) b) Based on a recent lawsuit news of Cactus plc, Ms. Jones contacted her broker and decided to sell short 500 shares of Cactus plc common stock at $37 per share. The initial margin is 75%. 1) Define short selling. (5 marks) 2) What is Ms. Jones' percent margin if the stock price increases to $55 per share in a week? (5 marks) 3) Assume the maintenance margin is 60%, at what stock price would Ms. Jones receive a margin call? (5 marks) a) Define broker and market maker (dealer). Explain the key differences between these two roles. (10 marks) b) Based on a recent lawsuit news of Cactus plc, Ms. Jones contacted her broker and decided to sell short 500 shares of Cactus plc common stock at $37 per share. The initial margin is 75%. 1) Define short selling. (5 marks) 2) What is Ms. Jones' percent margin if the stock price increases to $55 per share in a week? (5 marks) 3) Assume the maintenance margin is 60%, at what stock price would Ms. Jones receive a margin call? (5 marks)

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Step 12 a A broker is an individual or firm that acts as an intermediary between buyers and sellers They facilitate the buying and selling of securities commodities or other financial instruments by b... View the full answer