Todd Has $54,000 Cash in His Margin Account

question 5

Multiple Choice

Todd has $54,000 cash in his margin account. His initial margin is 60% and the maintenance margin is 35%. What is the maximum number of shares he can purchase if the price per share is $25?

• A)1,296 shares
• B)2,160 shares
• C)3,600 shares
• D)5,400 shares
• E)6,171 shares

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Definitions:

Founding Team

A group of people who start a business or organization together, bringing different skills and visions to the venture's inception.

University Classmates

Individuals enrolled in the same educational institution or course.

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Co-Owner

An individual or entity that shares ownership rights with one or more parties in a property or business.