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Rama09 [41]
3 years ago
13

A customer opens a margin account by purchasing 100 shares of ABC at $60 per share, depositing the 50% Regulation T requirement.

The stock rises to $80 per share on the next day and then falls to $60 per share on the day after. The account will now show:
Business
1 answer:
Scilla [17]3 years ago
5 0

Answer:

Account Balance in margin account:

Investment = $6,000 (100 x $60)

The customer's account will first increase with an unrealized gain of $2,000 ($80 - 60 x 100) on the next day.  It will then decrease with an unrealized loss of $2,000 ($80 - 60 x 100) on the day after.  This cancels the earlier unrealized gain.

Explanation:

The customer's investment will now show a balance of $6,000 with a contra account showing a debt of $3,000 for the balance of the Regulation T margin account.  According to investopedia, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products.  The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."

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b.digital marketing

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Yes Yes I do what grade though? and type

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3 0
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Describe how native advertising differs from traditional paid advertising and what is driving its growth. Is native advertising
DerKrebs [107]

Answer:

Native ads have been shown to perform better on mobile than those of traditional design as well. This is because in order to make an effective native ad, it has to be relevant to the content in which it is featured—unlike traditional ads that are placed on screen and don't necessarily match up with messaging.

Explanation :

5 0
2 years ago
The term crowding-out effect refers to a situation in which a government _______________ results in ______________ interest rate
Allisa [31]

Answer: Deficit; higher; a decrease

Explanation:

<em>The term crowding-out effect refers to a situation in which a government </em><em><u>deficit</u></em><em> results in</em><em><u> higher</u></em><em> interest rates, causing </em><em><u>a decrease</u></em><em> in private spending on investment and consumer durables.</em>

The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.

If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.

As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.

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Automatic increases and decreases in government expenditure and taxation that follow the economic cycle. The majority of government spending in the United States took place at the state and municipal levels up to the Great Depression of the 1930s.

The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Federal Expenditures and Purchases as a Percentage of GDP, 1950–2008.

To learn more about  federal government, click here

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1 year ago
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