A Margin Loan

Multiple Choice

A margin loan:

A) is one made by a commercial bank to a small business whose financial performance is marginal.
B) carries much higher rates because the collateral supporting it is so risky.
C) is a loan from an entrepreneur's stockbroker that uses the entrepreneur's investment portfolio as collateral for the loan.
D) must be repaid within 60 days or is considered to be in default.