Question

In: Finance

Which of the following statement is NOT correct? None of the above Spread is a trading...

Which of the following statement is NOT correct?

None of the above

Spread is a trading cost for investors when trading common stocks

12b-1 Fee is not a trading cost for investors when trading common stocks

When buying on margin, if margin is greater than Initial Margin Requirement, a margin call will occur

ETFs have gain popularity during the past 10 years

Solutions

Expert Solution

D) when buying on margin, if margin is greater than initial margin requirement, a margin call will occur

Explanation: We get a margin call when the value of margin account falls below maintenance margin and not below initial margin requirement .


Related Solutions

Which of the following statement is correct? None of the above Price Impact is not a...
Which of the following statement is correct? None of the above Price Impact is not a trading cost for investors when trading common stocks When buying on margin, if margin is less than Initial Margin Requirement, a margin call will occur Commission is a trading cost for investors when trading common stocks Purchases of new issues of stock take place in the money markets
1)a.Which of the following statement is correct?None of the aboveSpread is not...
a. Which of the following statement is correct?     None of the above     Spread is not a trading cost for investors when trading common stocks     Both open-end and close-end fund shares can be traded     Closed-end fund share price is always the same as NAV     Mutual funds can invest in money market instruments b. Which of the following statement is NOT correct?     Municipal bonds is not a financial asset  ...
Which of the following statement is NOT correct? Price Impact is a trading cost for investors...
Which of the following statement is NOT correct? Price Impact is a trading cost for investors when trading common stocks None of the above Fund turnover can hurt mutual fund investors in terms of commission and tax liability Open-end mutual funds offer investors a guaranteed rate of return Fund turnover can hurt mutual fund investors in terms of commission and tax liability
Which of the following statement is NOT correct? 12b-1 Fee is not a trading cost for...
Which of the following statement is NOT correct? 12b-1 Fee is not a trading cost for investors when trading common stocks Mutual funds investors pay taxes on capital gain and dividends None of the above Price Impact is not a trading cost for investors when trading common stocks There is a decrease in number of IPOs after 2000
Which of the following statements is correct? Group of answer choices None of these is correct....
Which of the following statements is correct? Group of answer choices None of these is correct. The demand for iPads is more elastic than the demand for tablets in general. Here, iPads is one kind of tablets. The demand for a necessity good is more elastic than the demand for a luxury good. The demand for cell phones is more elastic over a short period of time than over a long period of time
Which of the following statements is correct? a. None of these statements are true. b. An...
Which of the following statements is correct? a. None of these statements are true. b. An initiator promotes the effectiveness of a reaction and is recoverable. c. An initiator is consumed by the reaction. d. An initiator serves to hold a polymer chain in a particular orientation,
Which of the following statement is correct?
Which of the following statement is correct?DJIA is not value weightedNone of the aboveIf the Efficient Markets Hypothesis is NOT true, all stocks are correctly pricedCommon shares is not a financial assetCommon shares is not a financial assetWhich of the following statement is NOT correct?None of the abovePrice Impact is not a trading cost for investors when trading common stocksThere is a decrease in number of IPOs after 200012b-1 Fee is not a trading cost for investors when trading common...
Which of the following statement(s) is correct?
Which of the following statement(s) is correct?Cash flows are conventional when there are no cash inflows prior to a cash outflow.In terms of shareholder wealth maximization in the context of mutually exclusive projects, the project with the higher IRR is not necessarily better than the project with the lower IRR.Financing matters for valuation, but is typically ignored in determining cash flows in capital budgeting.a. All three are falseb. Only 1. is correctc. All three are correctd. Only 2. is correcte....
Choose a False statement: Allosterity can not be negative none of the answers are correct Homotropic...
Choose a False statement: Allosterity can not be negative none of the answers are correct Homotropic regulation occurs when a normal ligand of the protein is the allosteric regulator Heterotropic regulation occurs when a different ligand affects binding of the normal ligand Positive cooperativity corresponds to positive homotropic regulation
​Refer the figure above. Which of the following statement is true?
Refer the figure above. Which of the following statement is true? if the nominal interest rate is 105 and the inflation rate is 45, the market for loanable funds will be in equilibrium.When the domestic real interest rate is 6%, the current account will be balanced The equilibrium nominal interest rate is 6%.The inflation rate is necessarily 0%, since the nominal and real interest rates are identical in equilibrium
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT