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 3.1. How many shares of Turtle can Jackie purchase?
A) 5,000
B) 3,000
C) 1,800
D) 1,200
E) 750

Question

Quizplus · Accepted Answer

Jackie can purchase shares worth $150,000 with an initial margin of 60%, meaning she can buy shares worth $150,000 / 0.60 = $250,000. At $50 per share, she can purchase $250,000 / $50 = 5,000 shares.