You Purchased 100 Shares of ABC Common Stock on Margin

question 33

Multiple Choice

You purchased 100 shares of ABC common stock on margin at $70 per share.Assume the initial margin is 50% and the minimum margin is 30%.Below what stock price level would you get a margin call? Assume the stock pays no dividend;ignore interest on margin.

• A) $21
• B) $50
• C) $49
• D) $80
• E) none of these

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Definitions:

Social Contract

A theoretical framework suggesting that individuals mutually agree to sacrifice some freedom and submit to an authority or set of rules, in exchange for protection and social order.

Jean-Jacques Rousseau

An 18th-century philosopher known for his influence on political, educational, and cultural thought, particularly regarding society's natural state versus its corruption by civilization.

Microsociology

The study of individual or small-group dynamics within a larger society.

Microsociology

The study of individual and face-to-face interactions, focusing on the nuances of human social behavior.