With an initial margin requirement of 50%,if you have $10,000 in cash you can buy $20,000 of securities.

Name: With an initial margin requirement of 50%,if you have $10,000 in cash you can buy $20,000 of securities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

With an initial margin requirement of 50%, you need to have half the value of the securities you want to buy in cash. So, if you have $10,000 in cash, you can buy securities worth up to $20,000 ($10,000 divided by 0.5). Therefore, the statement is true.

With an Initial Margin Requirement of 50%,if You Have $10,000