You recently purchased 800 shares of Southern Timber stock for $35 a share.Your broker required a cash payment of $19,600,plus trading costs,for this purchase.What was the initial margin requirement?

Name: You recently purchased 800 shares of Southern Timber stock for $35 a share.Your broker required a cash payment of $19,600,plus trading costs,for this purchase.What was the initial margin requirement?
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Question

Quizplus · Accepted Answer

Purchase cost = 800 × $35 = $28,000
Initial margin percentage = $19,600 / $28,000 = 70 percent

You Recently Purchased 800 Shares of Southern Timber Stock for $35