Donna Recently Purchased 500 Shares of Deltona Stock for $33

question 34

Multiple Choice

Donna recently purchased 500 shares of Deltona stock for $33.00 a share.Her broker required a cash payment of $10,725,plus trading costs,for the purchase.What is the initial margin requirement on this particular stock?

• A) 60 percent
• B) 65 percent
• C) 75 percent
• D) 80 percent
• E) 90 percent

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Definitions:

Profitability Ratios

A group of ratios that show the combined effects of liquidity, asset management, and debt on operations.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Asset Management

The process of overseeing and optimizing the performance of a set of assets in a way that aligns with the investor's objectives.

Seasonal

Pertaining to changes, fluctuations, or patterns that occur at specific times of the year or in specific seasons, often due to changes in weather, holidays, or business cycles.