Assume you purchased 600 shares of XYZ common stock on margin at $35 per share from...
Assume you purchased 600 shares of XYZ common stock on margin at $35 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.
Homework Answers
Calculate the amount borrowed from the broker as follows:
Amount borrowed = Total amount *(1- Initial margin)
= 600*$35*(1-60%)
=$21,000*0.4
= $8,400
Therefore, the amount borrowed from the broker is $8400.
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Assume you purchased 600 shares of XYZ common stock on margin at
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