Question

you want to purchased XON stock at 60 from your broker using as little of your own as possible. if initial margin is 50 and you have 3000 to invest how many shares can you buy

Answer 1

100 shares

Step-by-step explanation:

Given data:

Initial margin given is 50, amount of investment 3000, price of the stock = $60 .

In order to calculate the number of shares, the following formula will be used by the company

5 = [(Q multiply with $60) minus $3,000] divide by (Q multiply with $60);

$30Q = $60Q minus $3,000; $30Q = $3,000;

Q = 100.

Therefore, 100 shares can be bought with the given data. The option with 100 shares is the correct.