Darlene Law has enough money to purchase 1,000 shares of stock in ABC Corporation.If she buys on margin,she can purchase an additional 1,000 shares.What is the margin?

Question

Quizplus · Accepted Answer

If Darlene can purchase an additional 1,000 shares on margin, that means the initial amount she has is equal to 50% of the total purchase price (since she can buy twice as many shares with the margin). Therefore, the margin is 50%.

Darlene Law Has Enough Money to Purchase 1,000 Shares of Stock