An account that permits an investor to borrow part of the cost of investment firm a brokerage firm.
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A. B. C. D.C
The account that permits an investor to borrow part of the cost of an investment from a brokerage firm is a margin account. A margin account allows an investor to borrow money from the brokerage firm using the securities held in the account as collateral.
Here's a more detailed explanation of the other answer options:
A) Dealer account: A dealer account is an account that allows an individual or entity to buy and sell securities for their own account rather than for clients. It is a type of account used by market makers or firms that engage in proprietary trading.
B) Option account: An option account is an account that allows an investor to trade options. Options are financial instruments that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price within a specific time period.
C) Margin account: A margin account is a type of brokerage account that allows an investor to borrow money from the broker-dealer to purchase securities. The investor must deposit a certain amount of cash or securities into the account as collateral, and the broker-dealer will typically set a minimum maintenance margin requirement that the investor must maintain in order to continue borrowing.
D) Cash account: A cash account is a type of brokerage account where the investor must pay for the securities they purchase in full, using only the cash available in the account. Margin trading is not allowed in a cash account.