When a business sells its stocks or bonds to investors, Ask an Expert

Finance

When a business sells its stocks or bonds to investors without going through any type of intermediary or financial institution, this process is known as a(an) _____. best-effort arrangement, initial public offering, direct transfer, primary market offering, or underwriting

You buy 100 shares of XYZ stock at $45/share, in a 60% margin account.

a. What is the debit balance (borrowed money) in the account?

b. How much equity did the investor provide?

c. If the stock price rises to $65/share, what is the new margin position?

d. What amount of stock can you sell and withdraw the cash to maintain 60% margin position?

e. If the stock price remains at $65/share, and you chose to buy more stock rather than d. above, how much more stock can you buy to maintain exactly 60% margin position?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92800204

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