What is an example of high opportunity cost?

Answers

Answer 1

Let a person has A illustration of opportunity cost. He has Rs. 50.000 in his possession, and he can either keep it with him at home or deposit it in the bank, where it will earn interest at 4% per year.

As a result, the opportunity cost of keeping money at home is Rs. 2000 per year, in contrast to the Bank.

What exactly is a high opportunity cost?

Your opportunity cost is the value of what it would have cost to rent elsewhere, assuming that other options were less expensive. The opportunity cost can be high at times, as if you passed up the chance to rent a great corner store for just $2,000 per month.

What is the name of opportunity cost?

The next best option is commonly referred to as opportunity cost. The loss of gain that could have been gained if another option was chosen is also referred to as the alternative cost. It can also be defined as the loss of a benefit as a result of making a different choice.

How significant is opportunity cost?

When making decisions, the idea of opportunity cost is used to help people and businesses make better choices, primarily by considering the alternatives. The cost and benefit of each option are included in opportunity costs, which can sometimes be difficult to estimate. Opportunity costs are based on the future.

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Related Questions

While training is often the first thing to go in tough economic times (and sometimes is never addressed at some companies), training employees at PlastiPharm always receives high priority. Training focuses on safety, quality, expert equipment operation, and accurately following processes to ensure things are done right the first time. How does the company benefit because of this training approach?
The company benefits by helping new employees connect with the company vision.
The company benefits by training employees to collaborate with each other.
The company benefits from lower costs, higher quality, and less waste.
The company benefits by creating a pipeline for future company leaders.

Answers

The company benefits from lower costs, higher quality, and less waste.When employees undergo training, it improves their skills and knowledge of the job and builds their confidence in their abilities.

What are the benefits if you will control waste and costs?The bottom line is that preventing waste will save you money. By consuming and throwing away less, you will reduce the need to handle, treat, and dispose of waste. Waste prevention can take many forms, including: Purchasing durable, long-lasting materials.Saves energy. Reduces greenhouse gas emissions that contribute to global climate change. Helps sustain the environment for future generations. Reduces the amount of waste that will need to be recycled or sent to landfills and incinerators.Recycling saves energy, helps keep materials out of landfills and incinerators, and provides raw materials for the production of new products. When waste cannot be prevented, recycling is the next best option. Recycling is more than extending the life of landfills.Waste reduction is more cost-effective than recycling because it reduces the amount of material that needs to be collected, transported and processed. Waste reduction can save money for businesses and institutions of any size.

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What are the 5 components of environment?

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The 5 components are Atmosphere, Hydrosphere Lithosphere  Biosphere and Anthroposphere

1. Atmosphere: The atmosphere is the layer of gases that surrounds the Earth, composed of nitrogen, oxygen, and other gases that help to regulate the temperature of the planet.

2. Hydrosphere: The hydrosphere is the layer of water that covers the Earth, including the Earth’s oceans, lakes, rivers, and groundwater.

3. Lithosphere: The lithosphere is the solid outer layer of the Earth, composed of rocks and soil.

4. Biosphere: The biosphere is the layer of living organisms that inhabit the Earth, including plants, animals, fungi, and bacteria.

5. Anthroposphere: The anthroposphere is the layer of human-made structures and activities that have an impact on the environment, such as cities, buildings, transportation systems, and industrial processes.

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A seller agrees to have their property listed on the MLS. As a result, the seller agrees to a dual agency relationship. What may arise if the seller subsequently withdraws their consent to dual agency

Answers

C) The property can no longer be listed on the Multiple Listing Service (MLS) because the seller withdraws their consent to dual agency.

In MD, is dual agency permitted?

The Maryland Real Estate Commission's Consent for Dual Agency form must be signed by both parties before dual agency can take place.

How Does Dual Agency Work?

When a real estate agent acts on behalf of both the seller and the buyer of a home, this is known as dual agency. Due to the potential for a conflict of interest that can arise when an agent negotiates on behalf of both parties, separate agents representing each party in the majority of real estate transactions are much more common.

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Full Question = A seller agrees to have their property listed on the MLS. As a result, the seller agrees to a dual agency relationship. What may arise if the seller subsequently withdraws their consent to dual agency...?

A. The seller must retain a new agent

B. The seller must retain a new broker

C. The property can no longer be listed on the MLS

D. The property will not be sold

As finance emerged as a new field, much emphasis was placed on mergers and acquisitions. True or False True False

Answers

Answer:

true true true

Explanation:

true true true

Which of the following items should a company report directly in its monthly cash budget?
a. Accrued interest on zero coupon bonds that it issued.
b. New shares issued in a stock split.
c. Its monthly depreciation expense.
d. New shares issued in a stock dividend.
e. Cash proceeds from selling one of its divisions.

Answers

A company should report directly in its monthly cash budget any cash proceeds from selling one of its divisions. option E is the correct answer.

What is a cash budget?

An estimate of a person's or a business's cash inputs and outputs over a certain time period is called a cash budget.

Cash budgets are typically used to determine whether a business has enough cash to support normal operations. It can also be used to assess how much money is being wasted on useless activities by a corporation.

A cash budget assists in preventing a cash crunch during times when a business faces a large volume of expenses.

It enables a business to decide how much credit it can provide to clients without experiencing liquidity issues.

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A state law that conflicts with the U.S. Constitution will be deemed unconstitutional under the Supremacy Clause
True False

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The Supremacy Clause declares unlawful state laws that contradict the US Constitution. True

The United States of America, also referred to as the US or America, is a nation that is largely located in the continent of America. There are 326 Indian Reservations, 5 Significant Unincorporated Territories, 9 Minor Outlying Islands, and 50 States in the union. It is the third-largest country on earth in terms of total area and land. Its marine borders are shared by a number of countries, including Russia, Cuba, and the Bahamas. It is the most populated nation in the Americas and the third most populous nation worldwide with a population of more than 333 million. Washington, D.C., is the country's capital city and financial hub.

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The process of object-oriented analysis can be viewed as the following steps: A)identify objects, then define each object's attributes, behaviors, and relationships B)define data members and member functions, then assign the class name C)declare public and private variables, prototype functions, and then write code D)write the main() function, then determine which classes are needed

Answers

Object-oriented analysis is a process of analyzing the problem and identifying the objects which will be used to solve the problem. The process involves the following steps:

1. Identify the objects: First, the objects in the system are identified. This is done by looking at the problem to be solved, and analyzing what the system should do to solve it. Once the objects have been identified, each object's attributes, behaviors, and relationships should be defined.

2. Create the classes: After the objects have been identified and defined, classes are created for each object. Data members and member functions are declared for each class, and the class name is assigned.

3. Declare variables and functions: Public and private variables, as well as prototype functions, are declared.

4. Write the code: Once the variables and functions have been declared, the code is written.

5. Write the main() function: The main() function is written, which is the starting point of the program. This function determines which classes are needed and calls the appropriate functions.

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Mick bought some compact discs. If sales tax was 6% and the tax on his purchase was $1.68, what was the cost of the compact discs before tax?

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Mick purchased a few CDs. The value of the cd's before taxes is $1.58 if tax rate was 6% as well as the tax on his sale was $1.68.

How is a purchase defined in accounting?

The two most common payment methods are cash and credit. Another way to make a purchase is to assume a debt or participate in a trading where different non-cash goods are traded, 10,000 pairs or sneaker are ordered by Shoes Unlimited from a foreign vendor. This entails the filing of a requisition, which is a formal declaration by the business that it will buy the specified kind and number of shoes. The area of accounting known as tax accounting is responsible for processing tax payments and tax returns. Individuals, companies, corporations, and other entities all use tax accounting.

Let x be the cost prior to taxes.

x+6% of x = 1.68

106x/100 = 1.68

x = 1.68*100/106 = $1.58

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Gemma wants to promote her online handbag business to a wide audience. But she's busy creating handbags for her clients, and has little time to manage the specifics of an advertising campaign. How can Smart Shopping campaigns help her achieve this

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Smart shopping campaigns help her achieve this by showing ads to multiple audiences and networks.

Smart Shopping campaigns combine standard shopping and display remarketing campaigns to automatically promote Gemma's handbag business across all networks and a wide audience. Ads are shown to multiple audiences and networks.

Skill shop Shopping Ads Certification

Reach more customers with Shopping campaigns

Simplify campaign management with Smart Shopping campaigns

Smart Shopping campaigns make it easier to manage and reduce the time it takes to advertise your business by automatically uploading product details from the manufacturer's website.

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how can you get back to your track/shedule once you break your consistently?​

Answers

Answer:

To get back into the habit of something takes a little bit. First you must start to remember to do that thing at the correct time, so I reccomend setting an alarm or timer for it. Once you remember it, make sure not to break the habit unless absolutely necessary. If you break it again and need to get back to it, repeat the above steps.

I hope this helps.

Answer:here are seven strategies that you can use to get back on track and bounce back right now…

Explanation:

1. Schedule your habits into your life.

2. Stick to your schedule, even in small ways.

3. Have someone who expects something of you.

4. Focus on what you can work with.

5. Just because it’s not optimal, doesn’t mean it’s not beneficial.

6. Design your environment for success.

7. Care.

1.Limitations of the _______ budgeting method include not allowing firms to exploit the unique opportunities or problems they confront in a market. If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time.

Answers

Companies are unable to take advantage of the unique opportunities or challenges they face in a market because of the competitive parity budgeting method's limitations.

In VRIO, what is competitive parity?

If a lot of people in an industry have access to a certain valuable resource, they can all use it in the same way. Then, using that resource, none of the players gain a competitive advantage. Competitive parity or competitive equality refers to this circumstance.

In business, what does parity mean?

The condition in which two things are equivalent to one another is referred to as parity. As a result, it can be used to refer to two securities of equal value, such as the value of a stock and a convertible bond (if the bondholder chooses to convert the bond into common stock).

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8.What is the difference between a release of information authorization and an accounting of disclosures

Answers

A list of the information that has been disclosed and with whom can be found in an accounting of disclosures. The patient's consent to the disclosure of their health information is known as a release of information authorisation.

What does accounting for disclosures serve to achieve?

To make sure that each Company-affiliated institution, and each department within it, is aware of the need to fill out and submit an Accounting of Disclosures of Protected Health

What does information release in medical billing mean?

Release of information refers to the act of giving protected health information (PHI) to a person or organisation that has been granted permission to access it. The process is difficult and restricted by both federal and state standards, even with electronic health records.

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Which of the following is NOT one of the three ways for companies to set prices?
a. medium prices
b. high prices
c. low prices
d. discretionary prices

Answers

Answer:

D. discretionary prices is the answer.

Explanation:

Which of the following is not one of the potential responses to a specific risk event?
A. Sharing
B. Transferring
C. Ignoring
D. Mitigating
E. Retaining

Answers

Ignoring is not one of the potential responses to a specific risk event.

What is specific risk?For investors, specific risks are hazards specific to a particular company, industry, or sector. This is the opposite of general market risk or systematic risk. Certain risks are also known as non-systematic or diversifiable risks.Specific risk is the risk that an event will occur that  directly or indirectly affects the market value of an asset or a particular group of assets. Rumors of raw silicon shortages, for example, are a particular risk  computer and tech stocks are exposed to. Examples include news  specific to a stock or  group of companies, such as the loss of a patent or a major natural disaster affecting corporate operations. Unlike systematic  or market risks, certain risks can be diversified.

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you are not liable for damage to property next to a street or highway if in a collision.

Answers

Depending on the state, you may be liable for any damage done to property that is located next to the street or highway if you were found to be negligent or at fault in the collision.

What is collision?

Collision is a term used to describe an event in which two or more objects interact with each other, resulting in a direct physical contact. Collisions can occur between two particles, two bodies, and between a particle and a body. Collisions may be elastic or inelastic, depending on the amount of energy transferred during the interaction. In an elastic collision, the kinetic energy of the two objects is conserved, while in an inelastic collision, some of the kinetic energy is converted into other forms of energy such as heat or sound. Collisions are often used in physics to explain the behavior of objects moving through a medium, such as air or a liquid. They are also used to model the interaction between atoms and molecules in chemistry and the interaction between particles in quantum mechanics.

It is important to contact your local DMV and consult with an attorney to determine your legal liability in this situation.

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What are the 4 requirements for the production of goods and services explain with examples?

Answers

The four requirements for the production of goods and services are land, labor, physical capital and human capital.

Goods and services are formed by the combined efforts of several entities. The entities that are required for the production of goods and services include land, labor and capital of both the kinds that is physical and human capital. Land is the physical land where the owner will setup the company for the production of goods and services. The labor are the people who will work in the site for the making of the company. After the setting up of the company, the machines and the equipment that will produce the goods and services become part of the physical capital and the workforce that will make use of these equipment will come under human capital that is the employees.

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An account paying 4.6% interest compounded quarterly has a balance of $506,732.32. Determine the amount that can be withdrawn quarterly from the account for 20 years, assuming ordinary annuity. a. $9,722.36 b. $6,334.15 c. $23,965.92 d. $7,366.99 Please select the best answer from the choices provided A B C D

Answers

The amount $7366.99 can be withdrawn quarterly from the account for 20 years, assuming an ordinary annuity with 4.6% interest compounded quarterly. Hence, option (d) is the correct option.

Give a brief account on the annuity.

A series of recurring payments made in the investment industry is known as an annuity. Annuities include regular pension payments, frequent insurance payments, regular mortgage payments, and regular savings account contributions. Annuities can be divided into groups based on the regularity of their payment dates. The deposits (payments) may be made on a weekly, monthly, quarterly, annual, or any other regular basis. 'Annuity functions' are mathematical operations used to calculate annuities.

To determine the amount that can be withdrawn from the account on a quarterly basis, we can use the formula for calculating the present value of an annuity PV = PMT/ (r×(1+r)ⁿ) / (1-(1+r)⁻ⁿ)

Here PV = present value of the annuity

PMT = periodic payment or withdrawal amount

r = periodic interest rate

n = number of payments

Given that the interest rate is 4.6% per year and it's compounded quarterly, the periodic interest rate would be:

r = (0.046/4)

= 0.00115

Given that the account balance is $506,732.32 and the number of payments is

20 × 4 = 80

Then PV = PMT/ (r×(1+r)ⁿ) / (1-(1+r)⁻ⁿ)

PMT = PV × (r×(1+r)ⁿ) / (1-(1+r)⁻ⁿ)

= $506,732.32 × (0.00115×(1+0.00115)⁸⁰) / (1-(1+0.00115)⁻⁸⁰)

So the amount that can be withdrawn quarterly from the account for 20 years assuming the ordinary annuity is $7366.99

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20)Dustin's starting salary is $40,000. His salary is expected to increase by 4% each year. To the nearest dollar, what is Dustin's expected salary after 5 years

Answers

At the end of five years, Dustin must be paid $48666.

What exactly is simplifying?

In mathematics, simplifying and simplification refer to the process of operating and interpreting a function to simplify or make the expression easier to understand.

Dustin's starting salary is therefore $40,000 Each year, it is anticipated that his salary will rise by 4%. It is necessary to determine Dustin's anticipated salary after five years to the nearest dollar.

Let the Dustin salary at the end be x, as indicated by the question: x = 40000(1 + 0.04)n

Add n = 5 to the previous equation: x = 40000(1.04)5 x = $48666

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In the video, Jason Oxman, CEO of Electronic Transaction Association, refers to the fact that some credit card car rental insurance programs do not cover particular types of cars and trucks. According to the text, this is referred to as a(n) _____ coverage. a exclusion form

Answers

According to the text, this is referred to as exclusion form coverage.  The clause must be included as a term in the contract.

What is a good illustration of an exclusion clause?

A term in a contract known as an exclusion clause aims to limit or exclude one party's liability. It might, for instance, state that one party will not be held liable if the contract is broken, or it might try to limit the kinds of remedies that can be used or the time they can be used.

What does an exclusion clause mean?

A "clause in a contract or a term in a notice which appears to exclude or restrict a liability or a legal duty which would otherwise arise" is one definition of an exclusion clause (Yates, 1982, p. 1). Contracts today frequently include exclusion clauses, which can take a variety of forms.

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a ____ operation searches data in a table and retrieves records based on certain criteria.

Answers

In a relational database model, a select operation searches data in a table and retrieves records based on specific criteria. The correct option is (d).

What are database used for?

Businesses utilize the information contained in database help make smart business choices.

Observe your consumers. Information on people, such that of clients or users, is frequently stored in databases. Social media networks, for instance, employ warehouses to keep user data including names, email addresses, and usage patterns. The information is put to use to optimize the user experience and propose content to consumers.Protected personal health data. Datasets are used by healthcare practitioners to safely preserve patient information that will help them deliver better treatment.

CQ

In a relational database model, a(n)  ____ operation searches data in a table and retrieves records based on specific criteria.

(a) join (b) relation (c) find (d) select

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A nation that produces mostly farm products has negotiated a new farm treaty with the United States. The nation plans to spend a large amount of money only lobbying the Senate in favor of the treaty. Why might this be a good course of action for the foreign nation

Answers

The Senate ratifies treaties that the president has drafted. This would be a prudent line of action for the foreign nation. The nation plans to invest a sizable sum of money.

What does money mean to businesses?

Money is a secure investment that is used to promote value-based transactions. It serves as a channel of communication between people and things. It can reflect the amount of other items and serves as both a reserve currency and even a unit of account.

Why is money so crucial?

Money serves as a means of exchange, which makes it an advantageous item to possess because it saves the owner all time and effort needed to synchronize market exchanges. Convenience can be considered a luxury, especially when it includes saving time.

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An influential stakeholder has submitted a request for completing the project earlier than planned. What are the two parameters of the scope triangle that are most likely to be affected by this time change?

Answers

Scope, cost, and time are the three components of the project management triangle, which together determine the project's quality.

What stage of project management does the selection of the project manager and creation of the project charter occur?

The project's goals, scope, and restrictions are typically determined during the beginning phase by a project sponsor working with a project manager. The project charter is then created.

Which one of the following points should you take into account when choosing providers for your business?

Cost, capability, communication, and character are the four primary criteria that businesses use to choose their contractors. Every business transaction involves cost, but selecting a vendor involves far more considerations than simply accepting the lowest price.

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What is the main goal of free enterprise?

Answers

The main goal of free enterprise is to promote economic freedom and competition.

How can businesses maximize their success under free enterprise? Businesses can maximize their success under free enterprise by utilizing the principles of supply and demand. They can increase their production levels to meet the needs of consumers and adjust their prices accordingly. Businesses can also focus on offering products or services that are in high demand, while cutting costs and minimizing waste. Additionally, businesses should take advantage of modern technology and digital marketing strategies to reach as many potential customers as possible. Finally, businesses should focus on customer satisfaction and establish a strong relationship with their customers. By following these strategies, businesses can maximize their success and drive growth in a free enterprise economy.

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A man divided $9,000 among his wife, son, and daughter. The wife received twice as much as the daughter, and the son received $1,000 more than the daughter. How much did each receive

Answers

The wife received $4000, the daughter received $2000 and the son received $3000

A man gave his wife, son, and daughter a total of $9,000.

Now that we know, we can see that the son received $1,000 more than the daughter, and the wife received twice as much as the daughter.

We might therefore presume that,

The amount wife received = x

The amount daughter received = x / 2

The amount son received = 1000 + (x / 2)

The equation which can be formulated from the above situation is:

x + (x / 2) +  (x / 2) + 1000 = 9000

2x + 1000 = 9000

2x = 9000 - 1000

2x = 8000

∴ x = 4000

On solving the equation now we know that:

Wife = x = $4000

Daughter = x / 2 = 4000 / 2 = $2000

Son = 1000 + (x / 2) = 1000 + 2000 = $3000

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George tallies up the transactions in his check register and comes up with a total balance of $221.57, but his bank statement says that his balance is $203.73. Which of the following are still outstanding?
I. A $20.25 check to the florist
II. A $14.29 check to the dry cleaners
III. A $38.09 check deposit
IV. A $19.05 money order deposit
a.I and III
b.I and IV
c.II and III
d.II and IV

Answers

The correct response is a. I and III. George totals up his cheque book transactions and finds a balance of $221.57, yet his bank account indicates a balance of $203.73. Still outstanding are I and III.

A transaction is a fulfilled contract between a buyer and a seller to exchange goods, services, or financial assets in exchange for money. The expression is also commonly used in corporate accounting. Typically, a business will do four different types of financial transactions. The four basic types of financial transactions that have an impact on a company are sales, purchases, receipts, and payments. Any money movement into or out of your bank account is referred to as a bank transaction. Bank transactions come in many different forms, such as cash withdrawals or deposits, cheques, internet payments, debit card charges, wire transfers, and loan payments. The Basic Transaction is the agreement for goods and services that underlies the current framework contract and is developed, reached, and/or processed.

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how do tax returns work for married couples in the usa that one is a citizen and one has a green card

Answers

While it won't stop you from renew your Green Card, being well behind your taxes could have a negative impact on some of your future immigration benefits.

What else do taxes mean?

Taxes are compulsory payments made by a government agency, either local, regional, or federal, to people or businesses. Public works and services like roads and schools, as well as programs like Social Security and Medicare, are all funded by tax income.

Why do we impose taxes?

In addition to financing public goods and services, taxation plays a crucial role in the social contract that unites people and the economy. A government's legitimacy may be determined by how taxes are collected and used.

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Who has the power in a command economy?

Answers

In a command economy, often referred to as a planned frugality, the central government organizes, plans, and manages all profitable conditioning to maximize societal well-being.

The central authority in a command economy determines the location of the product of goods and their distribution and prices. Command husbandry proponents contend that public control, not a private enterprise, can guarantee an equitable distribution of goods and services.

For the benefit of society, the government formulates lucrative viewpoints. The government controls all coffers in a pure command economy, allowing it to drive them to manufacture goods that are fashionable for society rather than those that may be in the best interests of certain individuals.

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If a customer has a long margin account with a market value of $12,000, a debit balance of $8,000, and special memorandum account (SMA) of $2,000, how much can the customer withdraw from the account

Answers

A) The customer cash's out $1,000 from the account. The Special Memorandum Account, which does not include equity or cash, is referred to as SMA.

The minimum equity will be $5,000, or $25,000, which is 25% of the market value. The minimum maintenance call requirement for the NYSE is 25%. However, the customer only has $4,000 in the margin account, or $16,000. The debit balance is $16,000, while the market value is $20,000). As a result, the account needs an additional $1,000 ($5,000 x $4,000).

An SMA, or special memorandum account, is a credit line that is created when there is an excess of current equity over the current market value of the Registration T requirement. Investors frequently use this acronym. Maintaining purchasing power is its goal.

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Full Question = A customer's margin account has a market value of $20,000, DB of $16,000, and an SMA of $2,000. Based on this account, what would be the NYSE Minimum Maintenance Call?

a. $1,000 cash

b. $1,000 from SMA

c. $5,000 cash

d. $2,000 from SMA

If an investor maintaining a short equity option is assigned an exercise notice, which of the following statements is true

Answers

Option D is correct, she must accept the exercise notice. Once exercised, a contract may not be traded to another individual. The assigned party must either deliver (for a call) or buy (for a put) the stock in two business days (regular way settlement for stock transactions).

What is Exercising Options?

An American-style option holder has the choice to buy (in the case of a call) or sell (in the case of a put) the shares of stock that the option is based on.

Prior to doing so, they must instruct their brokerage company to send an exercise notice to OCC. Option holders must notify their brokerage company before the deadline for accepting exercise instructions on that day in order to guarantee that the option will be exercised on that specific day.

When an option holder wants to exercise an option, the brokerage firm notifies the OCC. The exercise notice is then given to a clearing member at random by OCC. This is often the investor's brokerage firm, which was randomly selected from a group of brokerage firms. The company is then required to designate one of its clients who has written (but not covered) that specific option.

Either at random or according to the principle of first-in-first-out, customers are assigned. Depending on the firm's methodology. Find out how your brokerage company handles assignments by asking them.

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when a customer is interested in puchasing penny stocks, the broker dealer must generally disclose either prior to the transactions or with monthly accoutn statements which of the following

Answers

When a customer is interested in purchasing penny stocks, the broker-dealer must generally disclose the current market quotation, compensation received, number of shares, risks, financial condition of an issuer, the fact that they may be acting as a market maker or liquidity provider, they may be a shareholder, and that the penny stock is a low-priced stock with greater risks.

When a customer is interested in purchasing penny stocks, the broker-dealer must generally disclose the following information either prior to the transactions or with monthly account statements:

The current market quotation for the penny stock, if any.The compensation received by the broker-dealer and any affiliated persons for selling the penny stock, including any compensation received in cash or securities.The number of shares to which such compensation relates.Any other facts that may be necessary to make the statements made, in light of the circumstances under which they are made, are not misleading.The risk of investing in penny stocks, which are typically highly speculative and volatile, and are subject to greater risks than investments in more established companies.The fact that broker-dealer is not required to disclose the financial condition of the issuer or the risks involved in the penny stock.The fact that the broker-dealer may be acting as a market maker or liquidity provider for the penny stock.The fact that the broker-dealer may be a shareholder of the penny stock.The fact is that penny stock is a low-priced stock and is subject to greater risks than investments in more established companies.

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