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Author Question: You made a $10,000 stock purchase on margin (50%). You put $5,000 into your account initially to ... (Read 53 times)

piesebel

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Question 1

The Federal Reserve currently limits the margin rate, the amount that can be borrowed from the brokerage firm to


◦ 40%.
◦ 50%.
◦ 60%.
◦ 75%.

Question 2

You made a $10,000 stock purchase on margin (50%). You put $5,000 into your account initially to cover the purchase. Your stock has declined in value to $7,000 and you receive a margin call. How much cash must you put into your account as a result of the margin call?


◦ $1,500
◦ $3,000
◦ $5,000
◦ None—you already have $5,000 in your account.


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Marked as best answer by piesebel on Apr 14, 2019

ky860224

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piesebel

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Reply 2 on: Apr 14, 2019
Thanks for the timely response, appreciate it


miss.ashley

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Reply 3 on: Yesterday
Wow, this really help

 

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