If the initial margin requirement is 50% and you have $5,000 in your brokerage account, you may purchase an additional __________ worth of securities on margin.
A) $2,000
B) $2,500
C) $10,000
D) $5,000

Question

Quizplus · Accepted Answer

The initial margin requirement of 50% means you can borrow up to 50% of the purchase price of the securities. With $5,000 in your account, you can purchase $10,000 worth of securities, using your $5,000 and borrowing the additional $5,000.

If the Initial Margin Requirement Is 50% and You Have