Three Hundred Shares of Stock Are Purchased on Margin at a Price

question 14

Essay

Three hundred shares of stock are purchased on margin at a price of $42 per share plus $150 in brokerage commissions at a time when the margin requirement is 50 percent.How much additional cash would you need to deposit with your broker if the price of the stock dropped to $37 per share?
(a)$825
(b)$1,500
(c)$1,650
(d)$5,550

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Definitions:

Third Party

A political party that competes alongside the two major parties in a two-party system.

Dominant Political Parties

Dominant political parties are those that hold significant influence over a country's politics, often characterized by their control over legislative bodies or executive positions.

Political Parties

Organized groups of people with similar political ideologies and goals that seek to influence public policy by getting their candidates elected to public office.

Party Polarization

The divergence of political attitudes to ideological extremes, leading to a significant divide between political parties, often resulting in gridlock.