46. What is a “margin call”?
a) A demand by a broker for additional funds to cover potential losses
b) A demand by a shareholder to increase dividend payments
c) A demand by a company to redeem all outstanding bonds
d) A demand by a regulatory body to suspend trading in a particular stock
47. What does the term “bid price” refer to in the capital market?
a) The price at which a buyer is willing to purchase a security
b) The highest price at which a security is traded in the market
c) The lowest price at which a security is traded in the market
d) The price at which a seller is willing to sell a security
48. What is a “custodian” in the capital market?
a) A financial institution that holds and safeguards securities on behalf of investors
b) A fund managed by a financial institution
c) An investment banker who assists in raising capital for companies
d) A government agency responsible for issuing currency
49. What does the term “stock option” refer to in the capital market?
a) The right to buy or sell a stock at a specified price within a specified time period
b) The right to receive dividend payments from a stock
c) The right to convert a bond into equity shares
d) The right to vote at a company’s annual general meeting
