Jenny purchases some stocks of Company X that initially cost $1,000 and pays for them in cash.

Question:

Jenny purchases some of Company X that initially cost $1,000 and pays for them in cash. Jim makes the same purchase but leverages his investment by borrowing $500 for the purpose at 10 percent interest, using the as security for repayment. If the price rises 20 percent, how much money do Jenny and Jim each make on their investments? If the stock declines in value by 20 percent, how much money will Jenny and Jim each have?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...