BUSINESS HIGH SCHOOL

Initial margin requirements are determined by:________ a. the Securities and Exchange Commission.
b. the Federal Reserve System.
c. the New York Stock Exchange.
d. B and C.
e. A and B

Answers

Answer 1
Answer:

Answer:

b. the Federal Reserve System.

Explanation:

Initial margin refers to the deposit made by an investor with a broker, in order to open a margin account. The purpose of initial margin is security and collateral to ensure enough availability of cash in the trading account of the investor.

For instance an investor wants to purchase 4000 shares priced at 15$. In this case, he is supposed to deposit 50% of $60,000 i.e $30,000. The remaining $30,000 is contributed by the brokerage firm, regarded as borrowings on which the investor pays interest.

The initial margin limit is fixed by the Federal Reserve System.

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The Federal Application for Student Aid (FAFSA) form:

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Answers

Answer:

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Explanation:

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Answers

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Answers

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Answers

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Answers

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