An investor deposited $6,000 in a margin account. Prior to the deposit the account balance was zero

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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 answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Oct 10, 2023 02:30 AM

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An investor deposited $6,000 in a margin account. Prior to the deposit the account balance was zero

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Income Tax Fundamentals 2013

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