Ralph Bought 100 Shares of IBM Stock on Margin

question 170

Multiple Choice

Ralph bought 100 shares of IBM stock on margin.At the time he made his purchase,which amounted to $10,000,the margin requirement was 60 percent.How much of the purchase amount could Ralph borrow?

• A)$5,000
• B)$10,000
• C)$4,000
• D)$6,000

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Definitions:

Contestable Market Model

A theory suggesting that a market with free entry and exit can be competitive even if there are few firms, due to potential competition.

Greatest Efficiency

Greatest Efficiency is achieved when a system or process produces the maximum output with the least amount of wasted resources.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players.

Advertise

The action or business of promoting and selling products or services, including market research and advertising.