Suppose you are buying stocks on margin. The margin requirement is 40% while the maintenance margin is
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Question:
Suppose you are buying stocks on margin. The margin requirement is 40% while the maintenance margin is 20%. Right now, you put $800 of your own money and the stock you want to buy today has a price of $50 per share.
How many shares of stock can you buy if you trade on margin?
What is your own equity percentage when the stock price turns out to be $60?
What is the margin call price for you?
Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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