Ibrahim invested $5,000 into a margin account and bought 5,000 shares of RISKY Corp. common stock that
Fantastic news! We've Found the answer you've been seeking!
Question:
Ibrahim invested $5,000 into a margin account and bought 5,000 shares of RISKY Corp. common stock that was trading at $1.00 per share. Now, six month later, the market price has increased to $2.00 per shares. Which of the following statements best describes Ibrahim's option now?
A) Ibrahim could purchase additional shares of RISKY Corp. only
B) Ibrahim could purchase additional shares of RISKY Corp. or any other company
C) Ibrahim could purchase additional shares of RISKY Corp. or any other company or borrow money against the position by withdrawing funds
D) Ibrahim could not make any of the above until some of the shares are sold and cash is available in his account
Posted Date: