How many shares of TIC could you purchase on margin if you have $6000? The market price is $20 and the margin requirement is 30 percent.

Question

Quizplus · Accepted Answer

To calculate the number of shares you can purchase on margin, divide your available funds by the margin requirement percentage and then by the price per share: $6000 / 0.30 = $20,000 available for purchasing shares. Then, $20,000 / $20 per share = 1000 shares.

How Many Shares of TIC Could You Purchase on Margin