How do margin trades magnify both the upside potential and the downside risk of an investment position?

Answers

Answer 1

Answer and Explanation:

Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.


Related Questions

explain the difference between a board meeting, a committee meeting and a staff meeting​

Answers

Answer:

Board meeting is a group of high ranked people coming together to discuss affairs.

committee meeting is the coming together of people in a particular organisation to talk on the matter of the place

staff meeting is the group of staff discussing the affair of where they work.

The funds the Fed receives from selling government securities
a. are deposited in a commercial bank.
b. disappear into thin air.
c. are turned over to the Office of Management and Budget in Washington, D.C.
d. are deposited in the U.S. Treasury.

Answers

Answer:

d. are deposited in the U.S. Treasury

Explanation:

The Federal income is mostly generated from the interests on the government securities, Once each and every expenses of the Fed is paid, the remaining earning is deposited in the  U.S. Treasury.

Hence, the correct answer will be "d. are deposited in the U.S. Treasury."

Why would decreased wages be an added problem for the Pullman workers?

Answers

Mark Brainliest please

Answer

The company cut their wages and extended their hours


Explanation:
Pullman was a company in the US that built and operated sleeping rail cars that operated on the railroads of the United states. These rail cars were also known as Pullman named after its company Pullman.
Pullman was founded by George Pullman and this company started from 1867 up until 1968. the workers working for Pullman had strike actions against their company as with many other workers who usually strike when not satisfied with the company. one reason of the strike was " The company cut their wages and extended their hours" this action was unfair and led to strikes against Pullman by the workers.

If the actual unemployment rate (U) is greater than the natural rate of unemployment (UN), a(n): Multiple Choice recessionary gap exists and actual real GDP (QE) is less than natural real GDP (QN). inflationary gap exists and actual real GDP (QE) is greater than natural real GDP (QN). inflationary gap exists and actual real GDP (QE) is less than natural real GDP (QN). recessionary gap exists and actual real GDP (QE) is greater than natural real GDP (QN).

Answers

Answer:

Option b (Inflationary gap.....(QN)) is the correct option.

Explanation:

Unemployment rates naturally are not dependent upon business price movements. Everything just necessarily leads to friction as well as structure.Whenever natural rates are below official unemployment, therefore inflation seems to be on the way to the industry, this same manufacturing sector overheats or the actual growth rate is higher above inflationary pressures throughout economic growth.

There are three more alternatives that do not connect to the circumstance. Thus, the solution is right.

mention any five types of small-scale retailers​

Answers

Answer:

Retail trade is carried on both at small scale and large scale. Small scale retailers are either mobile traders (itinerants) or fixed shops. Mobile Traders or Itinerants These retailers have no fixed place of business. They move from place to place and sell articles of daily use near to consumers. These include the following:Explanitaion:

1. Hawkers: A hawker moves about in residential localities. He carries his goods in a hand cart or bicycle. He deals in low-priced goods of daily use. E.g. combs, toys, soaps, mirrors, bangles, vegetables, fruits, ice-cream, etc. Read more on Sarthaks.

2. Peddlers: A peddler also moves from house to house and sells articles of daily use. But he carries his wares on his head or on the back of a mule. Read more on Sarthaks.

3. Cheap Jacks:A cheap jack hires a small shop in a residential locality for a temporary period. He shifts his business from one locality to another depending on the availability of customers. He deals in low-priced household articles. Read more on Sarthaks.

4. Pavement dealers or Street Traders: A pavement dealer displays his wares on footpath and outside public places such as railway station, bus stand, cinema, temple, etc. He sells low priced articles like newspapers, magazines, fruits, vegetables, footwear to the passersby. He is also called street trader. Read more on Sarthaks.

5. Market Traders:

A market trader sells goods at weekly markets when the shops are closed for weekly holiday. He displays goods outside the closed shops. He deals in lowpriced articles of daily use. He may also set up stalls on fairs and exhibitions. Fixed Shops (Small Scale Retail Shops) Small scale retail shops are the most popular form of retail trade. Read more on Sarthaks.

HOPE IT HELPS

If you are unhappy about the current transportation system, which of the following politicians will you vote for?

A. Politicians who advocates going to war abroad

B. Politicians who wants to improve roads and highways

C. Politicians who aim to improve the educational system

D. Politicians who suggest increasing the sales tax

Answers

Answer:

It would be B because these politicians would improve the roads and the means of transportation

Answer : B) Politicians who wants to improve roads and highways.

This answer is most associated with the topic of the transportation system. The improvement roads and highways would also improve on transportation.

Vance, a marketing major, was helping his sister develop her retail shop. Her business was not thriving, and Vance quickly determined that trying to please everyone was pleasing no one. Together they worked out an approach where she would identify groups of customers who had similar needs, and then work with each group to meet their needs. This basic process in marketing is called

Answers

Answer:

"Marketing segmentation" is the appropriate answer.

Explanation:

The technique of dividing large operations into communities having shared requirements, specifications as well as preferences, would be considered as Marketing segmentation.However, it is founded upon this notion that within an attempt to maintain their competitive edge as well as improved flexibility, organizations should identify organizational process categories.

Thus, the above is the correct response.

A City Electric Utility Enterprise Fund made its annual interest payment on its outstanding $20 million of 6% bonds, which were originally issued at a premium. Assuming the City maintains it books and records in a manner that facilitates preparation of its fund financial statements, the entry to record this would include a credit to Cash for the amount of the interest checks written and debit(s) to ___________.

Answers

Answer:

Debit to Interest expenditure and bond premium.

Explanation:

Based on the information the Appropriate journal entry to record this would include a CREDIT TO CASH for the amount of the interest checks written and DEBIT(S) to INTEREST EXPENDITURE AND BOND PREMIUM reason been that we were told the ANNUAL INTEREST PAYMENT on the company its outstanding was the amount of $20 million of 6 percent bonds, which were ISSUED AT A PREMIUM.

Debit to Interest expenditure and bond premium $1.2 million

($20 million*6%)

Cr Cash $1.2 million

wich market structure is agriculture farming operates​

Answers

Answer:

Economists often use agricultural markets as an example of perfect competition. The same crops that different farmers grow are largely interchangeable.

hope that helps<3

are you smart enough to do that task try it who is the first person made the light

Answers

Joseph Swan but Thomas Edison later capitalized on the invention by improving it

What kind of inventory tracking system shows the cost and gross profit margin in each item?

Unit-control systems

Dollar-control systems

Manual tag systems

Radio frequency identification systems

Answers

Answer:

hola its jess !!

answer is here:-

Dollar-control systems show the cost and gross profit margin on individual inventory items.

hope it may help you!!

Lightning strikes one of Christy’s trees in her backyard and starts a fire that spreads to two other trees before firefighters are able to put it out. The fire department charges her $600 for responding to her call. Christy’s DP-2 policy has a Coverage A limit of $95,000. What is the maximum amount of indemnification that Christy can expect to receive for this loss (ignoring any deductible)?

Answers

Answer:

$2000

Explanation:

The maximum amount of indemnification that Christy can expect to receive for the loss = $2000

Given that Indemnity is the payment made to an insured person that will cover the exact cost of the loss suffered

limit of Christy's DP-2 policy = $95,000

Cost of damages charged by fire department = $600

This is a partial loss  ( not considering depreciation )

Replacement cost = $95,000

assume percentage of loss = 2.1%

Max amount of Indemnification = 2.1% * 95,000 =  $1995 ≈ $2,000

A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and Group of answer choices is acceptable as a means to pay current liabilities. has a current market value that is greater than its original cost bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation. is so near its maturity that it presents insignificant risk of changes in interest rates.

Answers

Answer:

so near its maturity that it presents insignificant risk of changes in interest rates.

Explanation:

As we know that the cash equivalent i.e .short term and also classified as the highly liquid investment that is always ready to convert into the cash amount i.e. near to its maturity also at the same time it represent the non-significant changes risk with respective to the rate of interest

Therefore the last option is correct

Intra-industry trade between similar trading partners allows the gains from ______________________ that arise when firms and workers specialize in the production of a certain product.
a. comparative advantage
b. learning and innovation
c. creating the value chain
d. relative advantage

Answers

Answer:

b. learning and innovation

Explanation:

Intra-industry trade can be regarded trade involving exchange of similar products which belongs to the same industry. Intra-industry trade as a term

is usually used as regards to international trade, whereby same services or types of goods is been imported and exported. Learning and innovation skills usually spring out from a particular firm base it's speciality on one kind of products. It should be noted that Intra-industry trade between similar trading partners allows the gains from learning and innovation that arise when firms and workers specialize in the production of a certain product.

Answer:

Learning and innovation

Explanation:

Last year, Alfred earned $5,000, Betty earned $50,000, and Charlie earned $500,000. If they all pay a 35% tax on all their incomes, the tax would be described as a(n)
a progressive
b proportional
c excise
d regressive

The Federal Reserve can alter the business cycle through the use of
a monetary policy
b commercial banks
c fiscal policy
d unemployment legislation

The purpose of expansionary fiscal policy is to
a prevent hyperinflation
b increase the separation between Government and private industry.
c Increase output (GDP)
d slow the growth of GDP

Answers

Answer:

b. proportional

a. monetary policy

c?. increase output?

Explanation:

Hesitant on #3 because it could technically be considered a as well, but c marks its primary purpose.

Which of the statements below is​ FALSE? A. A problem with using the dividend growth model is that it appears to underestimate the expected return for some stocks B. A problem with using the dividend growth model is that it produces a negative expected return whenever a firm cuts its dividends. C. A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks. D. The dividend model requires that a firm have a cash dividend history and that the dividend history shows a constant dividend or a positive growth in dividends.

Answers

Answer:

C. A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks.

Explanation:

In the case of the dividend growth model, it shows the underestimated of the return for some stocks, also it generated the negative return at the time when the firm could cut the dividend. ALso it needs that the firm has the history of the cash dividend and that history should show the same dividend or the positive growth

But it does not show the underestimate for all kind of the stocks

please can u explain 5 types of ledgers​

Answers

Answer:

1. Sales ledger

2. Purchase ledger

3. Cash ledger

4. General ledger

Answer:

What is professions in nepal

Germany and the U.S. both produce cars and airplanes. The U.S. has the comparative advantage in producing airplanes if a. the opportunity cost of producing an airplane is lower for Germany. b. Germany requires fewer resources than the U.S. to produce an airplane. c. the opportunity cost of producing an airplane is lower for the U.S. d. the U.S. has an absolute advantage over Germany in producing airplanes.

Answers

Answer:

Option C

Explanation:

In simple words, The capacity of a country to provide a certain item or service at a lower opportunity expense than its trade rivals is known as comparative advantages.  A comparative advantages allows a firm to sell goods as well as services at a cheaper cost than its rivals while maintaining higher profit margins.

Thus, from the above we can conclude that the correct option is C.

Research three ways a business can promote products and services and describe the strengths and weaknesses of each.

Answers

Answer:

Promotions is the part of marketing that specifically involves communicating company or product information to targeted customers. This is a key component of the broader marketing system, because it is what usually makes customers aware of you, attracted to your brand, interested in buying and ultimately, loyal customers. Advertising, public relations and personal selling are three staple methods of promotion, though some new techniques have emerged in the early 21st century.

Advertising

Advertising takes up a significant portion of a company's budget allocated toward marketing and promotion. It includes the development and paid delivery of brand or product messages through media. Companies usually have internal advertising departments that design and develop ads, or they work with advertising firms who specialize in the advertising process. Since you pay for ad placement in media such as television, radio, newspapers and magazines, you generally have more control over the message than you do through some other promotional methods.

Public Relations

Maintaining goodwill with the public is an important long-term strategy for both small and large companies. A variety of public relations tactics are used to reach out to customers through unpaid-for media messages. Press releases are one of the most common and routine PR tactics. This is when a company sends an overview of a major change or event, product launch or other news to various media outlets. Press conferences, features news reports and newsletters are other common PR tools. A general objective of PR is to keep your brand in front of people even beyond paid ads. The challenge is you can't always control the way your PR messages are delivered or received.

Selling

While business typically engage in some level of advertising and public relations, the use of personal selling tactics varies considerably. Some small businesses don't employ active sales associates based on the small-scale products or services they sell. Companies with big-ticket items, such as electronics or appliances, more often use sales associates to stress the benefits of products to customers and to overcome their concerns. Selling is one of the most interactive forms of promotion.

 

Advertising, public relations and personal selling can promote products and services and describe the strengths and weaknesses of each.

What is a business?

Business refers to the activity of creating, purchasing, and reselling goods in order to support oneself financially.

Advertising: A considerable amount of a bank's advertising and development budget is spent on advertising. The majority of businesses either use internal advertising teams to create and develop their ads or they contract with external ad agencies who specialized in the process of marketing.

Public Affairs: Keeping the public's trust is a crucial long-term approach for businesses of all sizes. Customers are reached through unpaid media messaging using a range of public marketing strategies. Among the most common and conventional PR strategies is the press release.

Selling: While businesses usually participate in some form of advertising and promotion, the utilization of personal selling techniques varies greatly. Because they provide such low-volume goods or services, several small enterprises don't have active sales representatives.

Learn more about business, here:

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How can business activity affect the government?

Answers

Businesses often engage in a variety of tactics to influence government policy. This includes lobbying, political contributions, and interest group politics.

business do not maximise output from the given inputs​

Answers

Answer:

Allocative inefficiency.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

In Economics, there are four (4) main factors of production and these are;

I. Land.

II. Labor (working).

III. Capital resources.

IV. Entrepreneurship.

When these aforementioned factors of production are combined effectively and efficiently, they can be used for the manufacturing or production of goods and services to meet the unending requirements or needs of the consumers.

Basically, there are two (2) types of inefficiency associated with the production of goods and services to meet the unending requirements or needs of consumers, these includes;

1. Technical (productive) inefficiency: it occurs when a company or business firm produce goods and services that consumers do not want.​ This is typically as a result of the incorrect and inefficient allocation of scarce resources by a business firm or entity.

2. Allocative inefficiency: it occurs when a company or business firm do not maximise output from the given inputs such as raw materials, capital, etc. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.

Hence, when a business do not maximise output from the given inputs, it is referred to as an allocative inefficiency.

In conclusion, allocative inefficiency typically occurs when the price of a good or service isn't equal to its marginal cost i.e P ≠ MC.

When the production process is complete in process costing, the completed goods and the accumulated costs are transferred across departments using a journal entry that includes the following: multiple choice A debit to the Finished Goods Inventory account and a credit to the Work in Process account for the first department in the series of processes. A debit to the Finished Goods Inventory account and a credit to the Work in Process account for the final department in the series of processes. A debit to the Work in Process Inventory account for the first department in the series of processes and a credit to the Finished Goods Inventory account. A debit to the Work in Process Inventory account for the final department in the series of processes and a credit to the Finished Goods Inventory account.

Answers

Answer:

A debit to the Finished Goods Inventory account and a credit to the Work in Process account for the final department in the series of process

Explanation:

In the case when the process related to the production is finished so the completed goods and accumulated profits could be transferred

So, the following should be the journal entry

Finished goods inventory XXXXX

          To Work in Process Inventory - Final dept XXXXX

(Being the production process is completed recorded)

Here the finished goods is debited as it increased the assets and credited the work in process as it decreased the assets

The following events occurred last year at Dorder Corporation: Purchase of plant and equipment $ 45,000 Sale of long-term investment $ 24,000 Dividends received on long-term investments $ 9,000 Paid off bonds payable $ 12,000 Depreciation expense $ 32,000 Based on the above information, the net cash provided by (used in) investing activities for the year on the statement of cash flows would be: Multiple Choice $(32,000) $(69,000) $(12,000) $(21,000)

Answers

Answer:

$(21,000)

Explanation:

The computation of the  net cash provided by (used in) investing activities is shown below:

Cash flows from investing activties

purchase of plant and Equipment = -$45,000  

Sale of long term investment $24,000  

net cash used by investing activities - $21,000

Hence, the last option is correct

define inequality and poverty

Answers

Answer:

Inequality is the situation whereby there is a clear difference in access to certain economic and social resources by one sector of the population compared to others. Thus, the abysmal differences in income, levels of education, health or housing between the different social classes show this type of inequality situation.

On the other hand, poverty is a more concrete concept, in which one or several individuals have a situation of scarcity of elementary economic resources, which directly affects their quality of life.

points and freind requsts

Answers

Answer:

Thank you so much for points I will be your friend............

Matching Question Match the following strategies for selling products globally with the correct definition. Product extension Product extension drop zone empty. Product adaption Product adaption drop zone empty. Product invention Product invention drop zone empty. Creating a totally new product to satisfy common needs across countries. Selling virtually the same product in other countries. Changing a product to make it more appropriate for a country's climate or consumer preferences. Need help

Answers

Answer:

1. Product invention.

2. Product extension.

3. Product adaptation.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

1. Product invention: it involves creating a totally brand new product to satisfy or meet common consumer needs across countries.

2. Product extension: it involves selling virtually the same product in other counties i.e sales of product that are the same in various countries.

3. Product adaptation: it involves changing a product in order to make it more appropriate or convenient for a county's climate or consumer preferences.

Dobris Networks Inc. provides network traffic awareness, analysis, and control solutions for broadband service providers in USA. The company plans to expand its business in Austria. The directors of the company want a group of top level managers to take a call on the expansion strategy by studying the situation on hand. The task assigned to the group is an example of _____ tasks.

Answers

Answer:

D. intellective

Explanation:

The Intellective task is the task that includes the group capability for making the decision or the judgement

Since in the given situation it is mentioned that the company directors wants the group of the top level manager where the expansion strategy should be called via having the situation on the hand so here the task allocated to the group represent the example of the intellective task

Name the market structure in which agriculture farming operate​

Answers

Answer:

primary sector involves agricultural stuufs

hope it is helpful

Horizontal, vertical, and related acquisitions to build market power: Group of answer choices are likely to undergo regulatory review by various governmental entities. are rarely permitted to occur across international borders. concentrate on capturing value at more than one stage in the value chain. typically involve a firm purchasing one of its suppliers or distributors.

Answers

Answer:

likely to undergo regulatory review by various governmental entities.

Explanation:

A horizontal acquisition refers to the business strategy where the one company could take the other company that operates at the similar level while on the other hand the vertical integration is the integration where the business operation could be acquired with the similar kind of production

So these types of acquisition should established the market power through which the regulatory review could be undergone via a different government entities

meaning of accounting​

Answers

Answer:

Accounting is the process of recording financial transactions pertaining to a business. 

Other Questions
1. The set of ordered pairs {(-2, 4), (0,3), (4,11), (7. - 1)}| defined y as a function of x. Which of the followingoutput of the function when its input is 4?A) -1B)-2C) 0D) 11 Rearrange the formula to make x the subject.y = 4x + 3 Which transformation reflects a figure across the y-axis Which one of the following statements concerning vitamin B12 is correct?A\ it is present in plant products. B\ its deficiency is most often caused by a lack of the vitamin in the diet. C\ it requires a specific glycoprotein for its absorption.D\ it is involved in the transfer of amino groups. E\ the cofactor from is vitamin B12 itself. Following it's defeat in World War I, the Ottoman Empire: A. began a campaign of genocide against Armenian communities that did not support the war.B. adopted a communist form of government because of pressure from the Russian Bolsheviks.C. allowed ethnic groups in its territory to create new countries based on self-determination.D. gave up control of its African and Middle Eastern territories to the European Allies. Triangle ABC is translated to create triangle DFG, as shown below.2y + 12 cm212y - 3) cm312x + 10) cm12x + 12 cmGIn these triangles, side AB is congruent to side DF, and side BC is congruent to side FG. Determine the values of xandyShow your work Lori has 12 1/2 pounds of flour. She needs 1 3/4 pounds of flourfor each batch of cookies. How many batches can Lori make? A-21B.1-1The midpoint of AB = ([?],[ ]) What is the basic relationship between scarcity and choice? A) Absolute Advantage B) Free Enterprise C) Strategic Industry D) Planned Economy what is a 36% markup to $150 dallors Which statement best describes a command economy?Government intervention in economic choices is strictly forbidden.The government determines economic choices and makes most decisions.The decisions made by producers and consumers drive all economic choices.Producers and consumers make some economic choices while the government makes others. PLEASE HELP ASAP!!Q: Use the graph of f below. Assume the entire function is graphed below. Find where f(x) Which graph shows a dilation? help please and thank u Which group gained voting rights in the 1820s and 1830s?A. White womenB. Black malesC. Black womenD. White males What will be the smallest and largest no that when rounded off to thousand their answer is a) 785000b) 4528000What will be the smallest and largest no that when rounded off to hundreds the answer isa) 23700b) 429900What will be the smallest and largest no that when rounded off to tens the answer is a) 6450b). 88890 Three forces are applied to a solid cylinder of mass 12 kg (see the drawing). The magnitudes of the forces are F1 = 15 N, F2 = 24 N, and F3 = 13 N. The radial distances are R2 = 0.22 m and R3 = 0.10 m. The forces F2 and F3 are perpendicular to the radial lines labeled R2 and R3. The moment of inertia of the cylinder is 1/2 MR 2/2. Find the magnitude of the angular acceleration of the cylinder about the axis of rotation. Find the circumference of a circle whose area is 60 pi cm 2 /. A2 square root15 pi cm B.4 C.30 D.900 Please select the best answer from the choices provided A B C D Put these numbers in order from greatest to least.0.24,0.73,1/4, and 3/4 On January 2, 20X3, Kean Company purchased a 30 percent interest in Pod Company for $250,000. Pod reported net income of $100,000 for 20X3 and declared and paid a dividend of $10,000. Kean accounts for this investment using the equity method. In its December 31, 20X3, balance sheet, what amount should Kean report as its investment in Pod?a. $160,000.b. $223,000.c. $340,000.d. $277,000.