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BaLLatris [955]
3 years ago
10

Item 24Item 24 Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial m

argin is 60%, the amount you borrowed from the broker is _________.
Business
1 answer:
zalisa [80]3 years ago
6 0

Answer:

$8,000

Explanation:

The computation of the borrowed amount from the broker is shown below:

= Number of shares purchased × margin per share × remaining margin

= 500 shares × $40 per share × 40%

= $8,000

The remaining margin would be

= 100% - 60%

= 40%

In order to find out the borrowed amount we multiplied the number o shares purchased with the margin per share and the remaining margin so that the accurate value could come

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