If You Buy 100 Shares of IBM for $120/share, and the Margin

question 269

True/False

If you buy 100 shares of IBM for $120/share, and the margin on your account is 50%, the broker will float you an interest-free loan of $6,000, until the price of IBM sufficiently rises to the point where you are willing to sell. You pay the broker back its $6,000, and you enjoy the capital gain.

---

Definitions:

Labor Union

An organization formed by workers to protect and advance their rights and interests through collective bargaining.

Dismissal

The act of terminating an employee's contract by the employer, often due to redundancy, misconduct, or other workplace issues.

Illegal

Activities or actions that are forbidden by law, regulations, or statutory provisions, thus subject to legal penalties or sanctions.

Neoliberal Market Ideology

An economic philosophy advocating for reduced government intervention, free markets, and an enhanced role for the private sector in economic activities.