Theresa Has a Margin Account with a 60 Percent Initial

question 13

Multiple Choice

Theresa has a margin account with a 60 percent initial margin requirement and a 35 percent maintenance margin.What is the maximum dollar amount of stock she can purchase if her cash balance in the account is $35,300?

• A) $19,140.00
• B) $31,900.00
• C) $44,093.33
• D) $58,833.33
• E) $91,142.86

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Definitions:

Written Stop Payment Order

A formal request made to a bank by an account holder instructing the bank not to pay a specific check or payment.

Affirmative Duties

Obligations requiring individuals or entities to take certain actions or measures, often imposed by law or contract.

Assert Their Rights

To take actions or steps to claim or enforce one’s legal entitlements or privileges, often in the face of opposition or indifference.

Senior Managers

High-level executives responsible for overseeing the operations of a company or organization and setting strategic direction.