Describe your understanding (from the readings specifically (the notion of margin. Why is this important to investors? Provide at least a few sentences. Then, answer the following question: If you purchase 200 shares of RonenCo stock on margin at $70 per share from your broker, and if the initial margin is 55%, what is the dollar amount that you borrowed from the broker? Explain precisely how you found this. What do you think of the concept of margin?

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Margin is a term that refers to the amount of funds or collateral that an investor must deposit with ... View the full answer