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example question 1: You open a brokerage account and purchase 300 shares at $40 per share. You borrow $4000 from your broker to help pay
example question 1: You open a brokerage account and purchase 300 shares at $40 per share. You borrow $4000 from your broker to help pay for the purchase. The interest rate on the loan is 8%. What is the margin in your account when you first purchased the stock? If the share price falls to $30 per share by the end of the year, what is the remaining margin in your account?
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