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Author Question: Which one of the following statements about margin trading is correct? (Read 160 times)

hgjjghgjh

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Question 1

Which one of the following is a major advantage of margin trading?
◦ increase in potential diversification
◦ increase in potential profits on a percentage basis
◦ possibility of increased gains on a dollar basis
◦ interest free loans

Question 2

Which one of the following statements about margin trading is correct?
◦ The Federal Reserve sets the minimum margin requirement for margin trading.
◦ If Fred buys $1,000 worth of stock using 60% margin, he will need to pay $400 in cash to make the purchase.
◦ Purchasing stocks on margin is less risky than purchasing stocks by paying cash for the entire purchase.
◦ Margin trading increases the potential profits while lowering the potential losses on a percentage basis.


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Marked as best answer by hgjjghgjh on Mar 29, 2022

kalimarie

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hgjjghgjh

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Reply 2 on: Mar 29, 2022
Excellent


sarah_brady415

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Reply 3 on: Yesterday
Wow, this really help

 

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