Assume you purchased 100 shares of common stock at $50 per share.The initial margin is 40%.Your investment was

Name: Assume you purchased 100 shares of common stock at $50 per share.The initial margin is 40%.Your investment was
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Question

Quizplus · Accepted Answer

The initial margin is 40%, which means you only paid for 40% of the stock and borrowed the remaining 60% from the broker.

So, the amount you paid is: 
40% * ($50 * 100) = $2,000

Therefore, the correct answer is C) $2000.

Assume You Purchased 100 Shares of Common Stock at $50