A stock purchase of 100 shares of CN at $30 per share requiring a 30% margin means you would need $900 cash to make the purchase.

Question

Quizplus · Accepted Answer

To calculate the amount of cash needed for a 30% margin stock purchase, we need to use the formula:

Cash needed = (Number of shares x Share price) x Margin percentage

In this case, we have:

Cash needed = (100 x $30) x 30% = $900

Therefore, the statement is true.

A Stock Purchase of 100 Shares of CN at $30