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:

Water

A colorless, tasteless, and odorless substance in its pure form, essential for all known forms of life, and used for drinking, cleaning, and numerous industrial processes.

Incentives

Factors that motivate individuals or businesses to act in a certain way, often used to encourage productivity and economic efficiency.

Renewable Resources

Those that are renewed in nature, like water flows, or grown, like timber.