You want to purchase KO stock at $60 from your broker using as little of your own money as possible. If initial margin is 50% and you have $3,000 to invest, how many shares can you buy?
A) 100 shares
B) 200 shares
C) 50 shares
D) 500 shares
E) 25 shares

Question

Quizplus · Accepted Answer

With a 50% initial margin requirement, you can buy shares worth twice the amount of your own money. With $3,000 to invest, you can buy $6,000 worth of stock. At $60 per share, this allows you to purchase 100 shares ($6,000 / $60 per share = 100 shares).

You Want to Purchase KO Stock at $60 from Your