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Average Cost

"Average cost" typically refers to the average cost of stock or other securities bought at different prices over time.

 

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    Q: A trading order for less than 100 shares of stock is referred to as:

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   Merger Account

A "merger account" is an account where stocks can be purchased for cash and a loan. The loan is provided by the securities broker-dealer and is collateralized by the purchased stock. If the value of the stock drops, the securities, broker-dealer may issue a "margin call," which requires the owner to put up more cash or sell all or a portion of the collateralized stock.
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