You Purchase 800 Shares of Stock on Margin at a Price

question 82

Multiple Choice

You purchase 800 shares of stock on margin at a price of $46 per share. If the initial margin is 60 percent, what is your margin loan?

• A) $16,960
• B) $22,080
• C) $18,310
• D) $36,800
• E) $14,720

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Definitions:

Ion

Atom or molecule that carries a net charge.

Electron

Negatively charged subatomic particle.

Covalent Bonds

Chemical bonds formed by the sharing of electron pairs between atoms, contributing to the stability of molecules.

Molecular Oxygen

A diatomic molecule \(\text{O}_2\) that is essential for respiration in aerobic organisms and acts as the final electron acceptor in cellular respiration.