You Own 400 Shares of a Stock That You Purchased

question 3

Multiple Choice

You own 400 shares of a stock that you purchased on margin at a price per share of $20.74. The stock is currently valued at $20 a share. Your broker advised you that your minimum equity position for this purchase is $2,800 as of today. What is the maintenance margin percentage?

• A)25%
• B)30%
• C)35%
• D)40%
• E)50%

---

Definitions:

Z-score

A statistical measure that describes the position of a data point in terms of standard deviations from the mean.

Standard Normal Curve

A bell-shaped curve that represents the distribution of data in which the mean is 0 and the standard deviation is 1, used in statistics to represent theoretical distributions.

Z-score

An analytical indicator showing a value's position in relation to the average within a collection of values, expressed through its distance from the mean as measured in standard deviations.

Percentile

A value on a scale of one to a hundred that indicates the percent of a distribution that is equal to or below it.