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Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin i...

Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.

  1. $20,000

  1. $12,000

  1. $8,000

D.$15,000

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Answer #1


Solution: 8000 amount borrowed from the broker = 500*40*(1-0.6)

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