1. You establish a margin account with Morgan Stanley and invest $20,000 into the account. You are allowed to purchase 50% on margin. What is your total buying power? ________________

 

1. You purchase $40,000 worth of stock by borrowing $20,000 from Morgan Stanley and paying $20,000 yourself. If the market value drops by $10,000, what is the remaining equity in your account?

Answer rating: 100% (QA)

Total Buying Power When you establish a margin account and invest 20000 and youre allowed to purchas... View the full answer