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Tate Industries stock is selling for $20 a share. You would like to purchase as many shares of this stock as you can. Your margin account currently has available cash of $4,500 and the initial margin requirement is 75 percent. What is the maximum number of shares you can buy

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abiolataiwo2015

Answer:

300 shares

Explanation:

Calculation for the maximum number of shares you can buy

First step is to calculate the Maximum purchase

Maximum purchase = $4,500/.75

Maximum purchase = $6,000

Now let calculate the Maximum number of shares

Maximum number of shares = $6,000/$20

Maximum number of shares= 300 shares

Therefore the maximum number of shares you can buy is 300 shares

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