After purchasing common stock on margin, an investor can calculate his Actual Margin by

Name: After purchasing common stock on margin, an investor can calculate his Actual Margin by
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The Actual Margin is calculated by dividing the equity by the market value of the securities. Equity represents the investor's own money in the investment, while market value is the current value of the securities purchased. This ratio shows the proportion of the investment that is financed by the investor's own funds.

After Purchasing Common Stock on Margin, an Investor Can Calculate