You buy 1000 shares of GE at $24 per share.

• You put up $18,000 and borrow the rest.

•What is your margin?

		25%
		50%
		65%
		75%
		80%

Solutions

Expert Solution

whatever you are borrowing is your margin.

So borrowing percentage = Amount invested in shares / Total investment in shares

Total investment in shares = Number of shares * share price

=> 1,000 * 24 = 24,000

Margin = 18,000 / 24,000 * 100

= 75%

The correct answer is 75%

jeff jeffy answered 2 years ago

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