Todd Has a Margin Account with $17,400 in Available Cash

question 16

Multiple Choice

Todd has a margin account with $17,400 in available cash. The initial margin is 70% and the maintenance margin is 30%. What is the maximum number of shares he can purchase if the price per share is $44?

• A)395 shares
• B)564 shares
• C)698 shares
• D)744 shares
• E)842 shares

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Definitions:

Conflicts

Situations or internal states in which incompatible goals, needs, or desires lead to psychological tension and struggle.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Reinforcement Value

The significance or appeal of a potential reward that strengthens or increases the likelihood of a desired response or behavior.

Outcome

The result or effect of an action, situation, or event.