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The margin requirement on a stock purchase is 25%, i.e., you have to have 25% of your own money to finance the purchase and borrow
The margin requirement on a stock purchase is 25%, i.e., you have to have 25% of your own money to finance the purchase and borrow 75% (Please note that the current law is that an investor has to have at least 50% of own money to finance a purchase). You fully use the allowed margin to purchase 100 shares of MSFT at $25. If the price drops to $22, what is your percentage loss?
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