Which one of the following statements is correct?
A) The call money rate is the rate of interest brokerage firms charge on margin loans.
B) The spread is the fee a deep-discount broker charges to execute a trade.
C) The percentage of a purchase paid for with borrowed funds is referred to as the margin.
D) A margin loan is treated as an asset on an account balance sheet.
E) Margin is equal to account equity divided by the value of the securities owned.
Correct Answer:
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