An investor deposited $6,000 in a margin account. Prior to the deposit the account balance was zero
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Question:
An investor deposited $6,000 in a margin account. Prior to the deposit the account balance was zero dollars. The investor plans to purchase a single stock on margin and would like the initial margin to be 60%. The stock currently has a price of $200 per share.
What is the maximum amount an investor can borrow from the broker to meet these conditions?
What is the maximum number of shares the investor can purchase using this account?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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