You Purchased 1,000 Shares of Stock at $42 a Share

question 75

Multiple Choice

You purchased 1,000 shares of stock at $42 a share.The stock is currently selling for $45 a share.The initial margin was 70 percent and the maintenance margin is 30 percent.What is your current margin position?

• A) 28.36 percent
• B) 25.00 percent
• C) 75.00 percent
• D) 63.59 percent
• E) 72.00 percent

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Definitions:

Regular Time Cost

The cost associated with normal operating hours or work performed during standard working times, excluding overtime or premium pay rates.

Varying Inventory Levels

Adjusting the amount of stock on hand to meet changing demand conditions or to maximize operational efficiency.

Back Ordering

Refers to the process of accepting and processing orders for currently out-of-stock goods to be fulfilled when the stock is replenished.

Services

Activities or benefits provided to consumers or businesses that do not result in the ownership of tangible goods.