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

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 .

jeff jeffy answered 2 years ago

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