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If an individual buys stock on margin and its price rises, Answer a. the investo

ID: 2705376 • Letter: I

Question

If an individual buys stock on margin and its price rises, Answer a. the investor must pay tax on the unrealized gain b. the investor must put up additional collateral c. the investor must pay interest on the borrowed funds d. the investor may take delivery of the stock If an individual buys stock on margin and its price rises, the investor must pay tax on the unrealized gain the investor must put up additional collateral the investor must pay interest on the borrowed funds the investor may take delivery of the stock a. the investor must pay tax on the unrealized gain b. the investor must put up additional collateral c. the investor must pay interest on the borrowed funds d. the investor may take delivery of the stock

Explanation / Answer

the investor must pay tax on the unrealized gain a. the investor must pay tax on the unrealized gain