1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ket [755]
2 years ago
11

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

Business
1 answer:
klio [65]2 years ago
4 0

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.

You might be interested in
Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labo
professor190 [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $8.70 per direct labor-hour. The production budget calls for producing 6,000 units in February and 6,500 units in March.

We need to determine the total direct labor hours needed for each month.

February:

Total direct labor hours= 6,000*0.07= 420 hours

Total direct labor costs= 420*8.7= $3,654

March:

Total direct labor hours= 6,500*0.07= 455 hours

Total direct labor costs= 455*8.7= $3,958.5

7 0
3 years ago
John d. rockefeller stands out among nineteenth-century business leaders because of his?
rosijanka [135]

John d. Rockefeller stands out among nineteenth-century business leaders because of his innovative organization called vertical integration.

<h3>What is vertical integration?</h3>

Vertical integration is a procedure that entails acquiring corporate operations in order to produce the same thing.

  1. When a business chooses vertical integration, they typically have control over some phases of product production and delivery.
  2. Vertical integration can also be defined as the union of businesses engaged in the same line of work but at various stages of production or distribution.
  3. For instance, because it involves many phases in its business, Amazon might be classified as one of the organizations with vertical integration.
  4. In addition to acting as a platform for buyers and sellers, Amazon also has its own distribution network and sells some of its own goods and services.

To learn more about vertical integration, visit:

brainly.com/question/13962641

#SPJ4

5 0
2 years ago
Is there any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported
antoniya [11.8K]
They could end up financing them too much and need to borrow more money from China (we are very much in debt right now) nd then we would have more to pay

8 0
3 years ago
Which replacement for the boldfaced words is​ best? barrigan was no fool.​ nevertheless, barrigan tried to repair the roof that
inn [45]
<span>b. barrigan tried to repair the roof that the contractor foolishly had fixed.

</span>
7 0
3 years ago
What is the most likely reason banks offer personal financial planning services?
9966 [12]

Answer: Financial planners at a bank are limited in the products they can sell. Investing with a financial planner at a bank may afford the consumer savings on other products offered by the bank.

Explanation: I found it on Quizlet

8 0
2 years ago
Read 2 more answers
Other questions:
  • After a series of train incidents, ns&amp;q offered employee bonuses based on safety for the first quarter of this year. this is
    7·1 answer
  • The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to bu
    14·1 answer
  • Swan Song is a spa that caters to the needs of a small percentage of highly health-conscious consumers. It offers state-of-the-a
    14·2 answers
  • Peggy, a foreman at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours fo
    7·1 answer
  • A formal rotational program makes talent assessment easier for all of the following reasons except:______ A. Change assignments
    5·1 answer
  • Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2. the store manager persona
    8·2 answers
  • ​Scenario: Farm Country and Industry Country are two neighboring countries. Both countries produce only one​ good: good X. Produ
    15·1 answer
  • The journal entry to record direct labor used in process costing is a(n):___________
    10·1 answer
  • Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement. N
    10·1 answer
  • suppose that when the price of hamburgers​ decreases, the ruiz family increases their purchases of ketchup. to the ruiz​ family,
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!