Assume you are an investor who has bought 100 shares of a company at $35 per share

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Assume you are an investor who has bought 100 shares of a company at $35 per share with a stock on margin of 60%. The stock is now trading at $50 per share, and the initial margin requirements has been lowered to 50%. You now want to buy another 300 shares of the stock. What is the minimum amount of equity that you will have to put up in this transaction?

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Related Book For  answer-question

Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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