According to the actual margin equation, it can be seen that at the time of the margin purchase, the actual and the initial margin are the _____.

Question

Quizplus · Accepted Answer

According to the actual margin equation, Actual Margin = Market Value of Securities - Loan Amount, it can be seen that at the time of the margin purchase, the loan amount is equal to the initial margin, meaning Actual Margin = Market Value of Securities - Initial Margin. Therefore, the actual and initial margins are the same at the time of the margin purchase.

According to the Actual Margin Equation, It Can Be Seen