Question
(Question 5) (Required) (Margin Trading) Suppose an investor initially pays $6,000 toward the purchase of $10,000 worth of stock (100 shares at $100 per share),
(Question 5) (Required) (Margin Trading)
Suppose an investor initially pays $6,000 toward the purchase of $10,000 worth of stock (100 shares at $100 per share), borrowing the remaining $4,000 from a broker. If maintenance margin = 40%. How far could the stock price fall before the investor would get margin call?
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Finance Without Fear Business Forecasting Workbook
Authors: William S. Hettinger, John Dolan Heitlinger
1st Edition
0982891717, 9780982891711
