Question 1
You purchase 300 shares of stock on margin at a price of $42 per share plus $150 in brokerage commissions at a time when the margin requirement is 50%. How much additional cash would you need to deposit with your broker if the price of the stock dropped to $37 per share?
◦ $825
◦ $1,500
◦ $1,650
◦ $5,550
Question 2
Which of the following is the most risky?
◦ Buying stocks online
◦ Buying on margin
◦ Buying from a broker
◦ Buying a bond
