If an investor uses the full amount of margin available, the equity in a margin account used for a stock purchase can be found as ________.

Question

Quizplus · Accepted Answer

The equity in a margin account used for a stock purchase can be found by deducting the amount owed on the margin loan from the market value of the stock. This gives the investor the value of their ownership interest in the stock.

If an Investor Uses the Full Amount of Margin Available