Solved

Michael Purchased 1000 Shares of Stock at a Price of $16

Question 107

Multiple Choice

Michael purchased 1000 shares of stock at a price of $16 a share.He utilized his 50% margin account to make the purchase.What is Michael's initial equity in this investment?


A) -$16,000
B) $16,000
C) $8,000
D) -$8,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q23: Margin trading will magnify losses on a

Q41: IPOs are relatively safe investments.

Q57: Capital markets deal exclusively in stock. Money

Q79: Which of the following acts abolished fixed

Q82: IPOs are typically underpriced so that the

Q100: Underwriters are responsible for promoting and facilitating

Q104: After hours markets tend to be less

Q109: Which one of the following is a

Q110: Jocelyn sells short 1000 shares of JKLO

Q114: The income paid to a market maker