Question: What effect does a stock substitution or stock split have on a price-weighted series? Index and divisor will both reflect the changes (immediately). Not enough

What effect does a stock substitution or stock split have on a price-weighted series?

Index and divisor will both reflect the changes (immediately).

Not enough information is provided.

Divisor remains the same, index will increase/decrease.

Index and divisor will both remain the same.

Index remains the same, divisor will increase/decrease.

Kathy Smith has a margin account with a balance of $60,000. Initial margin requirements are 80 percent, and Jackson Industries is currently selling at $40 per share.

If the maintenance margin is 25 percent, to what price can Jackson Industries fall before Kathy receives a margin call?

		$21.75
		$23.00
		$10.67
		$15.93
		$12.67

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