Exhibit 4.1
Use the Information Below for the Following Problem(S)
Jackie has a margin account with a balance of $150,000. The initial margin deposit is 60 percent and Turtle Industries is currently selling at $50 per share.
-Refer to Exhibit 4.1.How many shares of Turtle can Jackie purchase?
A) 5,000
B) 3,000
C) 1,800
D) 1,200
E) None of the above

Question

Quizplus · Accepted Answer

Letting X = total investment,Jackie's share will represent 60 percent.
Thus .60X = $150,000 and X = $150,000 ¸ .60 = $250,000.
At $50 per share,she can purchase ($250,000 ¸ $50)= 5000 shares.

Exhibit 4.1 Use the Information Below for the Following Problem(S)