Tomas purchased on margin 100 shares of stock in the Marshall Manufacturing for $50 per share yesterday. Today, the price of the shares dropped by $20 per share. Tomas expects his broker to issue a margin call.
Answer the following statement true (T) or false (F)
True
Buying on margin involves borrowing some of the stock purchase cost from the brokerage firm. If the investor's account goes down in market value, the broker will issue a margin call requiring the investor to come up with more money to cover the losses the stock has suffered. Margin calls require an investor to repay a significant portion of the loss within days or even hours.
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Answer the following statement true (T) or false (F)
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