You Purchase 300 Shares of Stock on Margin at a Price

question 46

Multiple Choice

You purchase 300 shares of stock on margin at a price of $42 per share plus $150 in brokerage commissions at a time when the margin requirement is 50%. How much additional cash would you need to deposit with your broker if the price of the stock dropped to $37 per share?

• A) $825
• B) $750
• C) $1,650
• D) $5,550

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Definitions:

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