You Currently Purchased 800 Shares of Stock on Margin at a Price

question 117

Multiple Choice

You currently purchased 800 shares of stock on margin at a price of $6.80 per share. Your broker required a cash payment of $5,440 plus trading costs. What was the initial margin requirement on this particular stock?

• A) 70%
• B) 75%
• C) 80%
• D) 90%
• E) 100%

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Definitions:

Figure-Ground

A principle in perception and visual psychology, where the viewer separates an object (the figure) from its surroundings (the ground).

Visual Illusion

A perception that misleadingly differs from reality, often due to the brain's interpretation of visual stimuli in a way that contradicts physical measurements.

Distal Stimulus

An object or event in the external world that provides the basis for the sensory input that is ultimately processed by the sensory receptors.

Proximal Stimulus

The physical energy from a stimulus that directly interacts with sensory receptors, such as the light patterns seen by the eyes.