You want to purchase XYZ stock at $60 from your broker using as little of your own money as possible.If initial margin is 50% and you have $3000 to invest,how many shares can you buy?

Question

Quizplus · Accepted Answer

With an initial margin of 50%, you need to pay 50% of the total purchase price with your own money. If you have $3000, you can buy $6000 worth of stock. At $60 per share, you can buy 100 shares ($6000 / $60 = 100 shares).

You Want to Purchase XYZ Stock at $60 from Your