Donna Recently Purchased 500 Shares of Deltona Stock for $28

question 18

Multiple Choice

Donna recently purchased 500 shares of Deltona stock for $28.60 a share. Her broker required a cash payment of $10,725, plus trading costs, for the purchase. What is the initial margin requirement on this particular stock?

• A) 70 percent
• B) 75 percent
• C) 85 percent
• D) 90 percent
• E) 100 percent

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Definitions:

Lowered Protectionism

A reduction in trade barriers and restrictions by a government to allow for more free exchange of goods and services between nations.

Systematic Development

A structured method for the development of something (e.g., software, organizational policies) ensuring regularity, predictability, and efficiency.

Practical Application

The use of theoretical knowledge in real-world scenarios to solve problems or accomplish tasks.

New Idea

A novel concept, thought, or innovation that has not been proposed or thought of before.