Margin is equal to the:
A) amount borrowed by the account equity.
B) account equity divided by the value of the stock.
C) account equity divided by the amount borrowed.
D) stock value divided by the account equity.
E) account equity minus the stock value.

Question

Quizplus · Accepted Answer

Margin in the context of investing is the account equity divided by the value of the stock. This ratio indicates the proportion of the investment that is owned outright by the investor, with the remainder being borrowed.

Margin Is Equal to The