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Kate just purchased $7,000 worth of stock. She paid $5,000 in cash and borrowed $2,000. In this example, the term margin refers to:

Kate just purchased $7,000 worth of stock. She paid $5,000 in cash and borrowed $2,000. In this example, the term margin refers to:\ \ \ the total amount of the purchase.\ \ the percentage of the purchase that was paid in cash.\ \ the percentage of the purchase paid with borrowed funds.\ \ any future increase in the value of the stock.\ \ any future decrease in the value of the stock.

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