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Author Question: A brokerage firm may set a higher margin requirement than that set by the Federal Reserve Board. (Read 187 times)

lrhoads

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Question 1

William purchased 1000 shares of stock at a price of $32 a share. He utilized his 50% margin account to make the purchase. What is William's initial equity in this investment?
◦ -$16,000
◦ $16,000
◦ $48,000
◦ $32,000

Question 2

A brokerage firm may set a higher margin requirement than that set by the Federal Reserve Board.
◦ true
◦ false


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Marked as best answer by lrhoads on Mar 29, 2022

ad2018

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lrhoads

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


AngeliqueG

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Reply 3 on: Yesterday
Excellent

 

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