Jackie has a margin account with $150,000 of his own money. The initial margin deposit required is 60 percent and Turtle Industr

Question

4 years ago

13

Jackie has a margin account with $150,000 of his own money. The initial margin deposit required is 60 percent and Turtle Industr

ies is currently selling at $50 per share. What is the maximum number of Turtle Industries shares Jackie can purchase meeting the initial margin requirement

Business

1 answer:

PtichkaEL [24] · Answer 1 · 2021-12-23T08:56:50+03:00

Answer:

The maximum number of shares is 5,000 shares

Explanation:

The computation of the maximum number of shares is shown below:

= Margin account amount ÷ initial margin deposit required ÷ current selling price per share

= $150,000 ÷ 0.60 ÷ $50 per share

= 5,000 shares

hence, the maximum number of shares is 5,000 shares

We simply applied the above formula so that accurate shares could come