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If an individual buys stock on margin and its price rises, the investor?

a. must pay up additional collateral b. must pay tax on the unreal...

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If an individual buys stock on margin and its price rises, the investor?

a. must pay up additional collateral
b. must pay tax on the unrealized gain
c. must pay interest on borrowed funds
d. may take delivery of the stock I took the exam and D was wrong.
I believe it is either b or c thanks

Answer

B, but only when you go to sell - capital gains

Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 58 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 82 views.

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