Ralph bought 100 shares of IBM stock on margin.At the time he made his purchase,which amounted to $10,000,the margin requirement was 60 percent.How much of the purchase amount could Ralph borrow?

Question

Quizplus · Accepted Answer

Ralph could borrow 40% of the purchase amount because the margin requirement was 60%, meaning he had to pay 60% himself. Therefore, he could borrow 40% of $10,000, which is $4,000.

Ralph Bought 100 Shares of IBM Stock on Margin