Because your equity in a margin trade is half of that required when purchasing a stock, the

Fantastic news! We've Found the answer you've been seeking!

Question:

Because your equity in a margin trade is half of that required when purchasing a stock, the risk you take is also half.

Ture or false

Related Book For answer-question

Financial Accounting An Introduction to Concepts, Methods and Uses

ISBN: 978-1133591023

14th edition

Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis

See More Books

Posted Date: Jan 02, 2021 10:08 AM

See More Questions

The audited annual financial statements of Maple Leaf Foods Inc. for the year ended December 31, 2014, can be found on the company's website or from SEDAR (www.sedar.com). Instructions (a) Calculate...
Excess capacity, foreign competition, and national recession have forced automotive giant Browning Motors (BM) to tighten its belt and to engage in broad restructuring with no end in sight. As a...
What accounts will appear on the financial statements of a merchandiser that will not appear on those of a service-oriented company?
Let be an arbitrary operation in Problems 5259. Describe the operation for each problem. 503 = 2; 702= 5; 901 = 8; 8 0 2 = 6;
Below are several cases related to the depreciation of plant and equipment. In all cases the company has a December 31 year-end. Case A: A machine was acquired on January 1, 2012 for $4,000,000. At...
Explain what arbitrageurs would do if the price of an American S\&P 500 futures put with an exercise price of 2,200 were priced at 45 when the underlying futures price was trading at 2,150 . What...
Streamlines are given in Cartesian coordinates by the equation. \[ \psi=U\left(y-\frac{y}{x^{2}+y^{2}} ight) . \quad x^{2}+y^{2} \geq 1 \] Plot the streamlines for $\psi=0, \pm 60.0625$, and...
The management of Quest Media Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: The radio station requires an investment of $999,250,...
C&C Sports' decision to remain a domestic producer is a strength as it allows the company to have better control over product quality and quick delivery to the local market. Product Range: The...
Cullumber Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for...
You will be writing helper methods for the LinkedList class that we developed and testing them. For this task, assume that the data that you are handling are integers. You may not change the...
Evaluate the sample results and consider the effect on planned substantive procedures perform a quantitative evaluation to determine whether the failure rate is acceptable for each sample. do not...
Determine the required heat transfer area of a shell and tube exchanger using the following information: q = mCpAT q = UAATm The shell and tube heat exchanger is required to cool 20,000 lb/hr of gas...
Explain why leasing is an option for a company expansion. include, what leasing is and how it will benefit the company in it's expanding efforts. Also, how is capital or operating leasing recorded on...
Peter has $12 and Paul has S7. They bet S1. Peter's probability of winning any game is 0.7. They will play until either player runs out of money a) What is the probability that Peter gets all the...
A 0.40 kg object undergoing simple harmonic motion has a the period of the oscillation? (a) 0.8 N/m, 0.5 s (b) 1.6 N/m, 7 s (c) 1.4 N/m, 2x s = -3 m/s2 when r=0.75 m. What is the spring constant and...
This code works perfect for one single paragraph. But what if we have 1000 paragraphs in one txt file. The code does not work: import csv data = "1. KOSTIOUK, Evgueni, Alzey, Germany; Poland; DOB 13...
Prove that the mean heat capacities C P H and C P S are inherently positive, whether T > T 0 or T < T 0 . Explain why they are well defined for T = T 0 .
Selected income statement information for Novo Limited (Novo), a Hong Kong personal computer manufacturer, for the years ended March 31, Years 9 and 10. Novo applies Hong Kong financial reporting...
Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations among various financial statement items provide evidence of many of these economic...
Market Star is a marketing services firm that creates advertising copy for clients and places the advertising in television, magazines, and other media. Accounts receivable represent amounts owed by...
For many years, womens professional basketball struggled for consistency in the United States. Since 1978, when the Womens Professional Basketball League (WBL) was formed, leagues have had difficulty...
What are the five forms of financing, and how is each used within sport?
That financial ratios are most valuable when viewed in comparison to the organizations historical ratio values and competitors values. Why is this context valuable when examining financial ratio...

Because your equity in a margin trade is half of that required when purchasing a stock, the

Question:

Expert Answer:

true Because margin trading involves b... View the full answer

Financial Accounting An Introduction to Concepts, Methods and Uses

Students also viewed these accounting questions