Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7 . If an investor uses the full amount of margin available, the equity in a margin account used for a stock purchase can be

7. If an investor uses the full amount of margin available, the equity in a margin account used for a stock purchase can be found as ________.
Question 7Answer
a.
market value of the stock - amount owed on the margin loan
b.
market value of the stock -: margin loan
c.
market value of the stock + amount owed on the margin loan
d.
margin loan \times market value of the stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk And Financial Catastrophe

Authors: E. Banks

1st Edition

0230577318, 0230243320, 9780230577312, 9780230243323

More Books

Students also viewed these Finance questions