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