If IIROC Limits the Margin on a Stock to 70

question 37

Multiple Choice

If IIROC limits the margin on a stock to 70 percent,initially how much money would you need to personally invest to purchase $10000 worth of BMO stock?

• A)$7000
• B)$3000
• C)It depends on the price.
• D)$10 000

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Definitions:

Industries

Sectors of the economy made up of manufacturing, production, or services that share common characteristics, skills, technologies, and markets.

Inventory Carrying

The costs associated with storing unsold goods, including finance, storage, and risk costs.

Obsolescence

The process of becoming outdated or no longer used, often due to advancements in technology or changes in consumer preferences.

Warehousing

The act of storing goods that will be sold or distributed later, involving a wide range of activities including holding, handling, and managing inventory.