The minimum initial margin for stock purchases in the United States is $50\%$ of the total amount invested.

Which of the following is the maximum amount worth of stock that you can purchase with $$2,000$ of investment capital?

$$3,000$

$$6,000$

$$4,000$

$$5,000$

Which of the following expressions describes the percent equity of a position in a margin account? Check all that apply.

EquityStock Value

Stock Value$-$DebtStock Value

Stock ValueEquity

Stock ValueStock Value$-$Debt

Suppose that the minimum percent equity for brokers is $30\%.$

If the percent equity falls to $27\%,$ which of the following are most likely to happen? Check all that apply.

The broker of the margin account will lower the minimum equity retirements of the account.

The investor will be asked to sell some of the stock position to pay down the margin debt.

$$6,000$

The broker of the account will make a margin call.