A stock is currently priced at $76 per share. If the initial margin is 60 percent, how many shares can you purchase if you have $15,000 to invest in the stock?
A) 164 shares
B) 366 shares
C) 268 shares
D) 328 shares
E) 183 shares

Question

Quizplus · Accepted Answer

To calculate the number of shares you can purchase, first determine the amount you can invest using margin: $15,000 / 0.60 = $25,000. Then, divide this amount by the price per share: $25,000 / $76 = 328 shares.

A Stock Is Currently Priced at $76 Per Share