If an Investor Uses the Full Amount of Margin Available

question 24

Multiple Choice

If an investor uses the full amount of margin available, the equity in a margin account used for a share purchase can be found as ________.

• A)market value of the share - amount owed on the margin loan
• B)market value of the share + amount owed on the margin loan
• C)market value of the share ÷ margin loan
• D)margin loan x market value of the share

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Definitions:

Labor Rate Variance

The difference between the actual labor rate paid and the standard or expected labor rate, impacting the total cost of production.

September

September, as identified in the Gregorian calendar system.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the expected amount, which can indicate efficiency or waste in the use of raw materials.

June

The sixth month of the year in the Gregorian calendar, known for marking the beginning of summer in the Northern Hemisphere.