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:

Central Nervous System

Part of the nervous system consisting of the brain and spinal cord, responsible for processing information and coordinating activity throughout the body.

Myelin Sheath

The white, fatty material that forms a sheath around the axons of certain nerve cells, which are then called myelinated fibers.

Neurotransmitters

Chemicals released by neurons to transmit signals across a chemical synapse to another neuron or to an effector cell, such as a muscle or gland.

Voltage-Gated

Pertaining to ion channels that open or close in response to changes in membrane potential, playing a critical role in the conduction of electrical signals in neurons.