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16 August, 06:03

Donna recently purchased 500 shares of Deltona stock for $33.00 a share. Her broker required a cash payment of $10,725, plus trading costs, for the purchase. What is the initial margin requirement on this particular stock?

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  1. 16 August, 07:39
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    65 percent

    Explanation:

    Given that,

    Value of investment:

    = Shares purchased * Price per share

    = 500 * $33

    = $16,500

    Initial margin = Cash : Investment

    = $10,725 : $16,500

    = 0.65 or 65%

    Therefore, the initial margin requirement on this particular stock is 65 percent.
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