Margin accounts cannot be used to which of the following


1. Margin accounts cannot be used to :

- purchase securities using leverage

- borrow money from a brokerage account to fund a frivolous vacation

- provide overdraft protection

- take physical delivery of an underlying asset on maturity of a futures contract

2. Which of the following statements regarding the short interest ratio is true?

- It is calculated by the total shares sold short divided by total shares outstanding

- It indicates the dollar amount needed to cover all short positions

- The higher the ratio, the more bullish investors are

- It is the amount of shares sold short divided by average trading volume

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Financial Management: Margin accounts cannot be used to which of the following
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