You are buying $21,000 worth of a stock. You are paying 65% in cash and borrowing the remaining 35% of the cost. The 65% is referred to as the _____, which is the portion of the value of an investment that is not borrowed.
A) Call money
B) Brokerage
C) Initial margin
D) Hypothecation
E) Short interest

Question

Quizplus · Accepted Answer

The 65% is referred to as the Initial Margin, which is the portion of the value of an investment that is not borrowed. The other options are not related to the concept of initial margin.

You Are Buying $21,000 Worth of a Stock