If You Buy 100 Shares of IBM for $120/share, and the Margin

question 269

True/False

If you buy 100 shares of IBM for $120/share, and the margin on your account is 50%, the broker will float you an interest-free loan of $6,000, until the price of IBM sufficiently rises to the point where you are willing to sell. You pay the broker back its $6,000, and you enjoy the capital gain.

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Definitions:

Land Dwelling Mammals

Mammals that primarily inhabit terrestrial environments, as opposed to aquatic or aerial settings, adapted to various landscapes including forests, deserts, and mountains.

Ocean Islands

Ocean islands are landforms that rise from the ocean floor and are not connected to a continent, often formed by volcanic activity.

Similar Environment

Situations or settings that share alike characteristics, including climate, resources, and challenges, possibly influencing organismal adaptations or behaviors.

Mitochondrial DNA

Genetic material found in mitochondria, the energy-producing organelles of cells, passed almost exclusively from mother to offspring.