subject
Business, 15.12.2021 19:50 monasiamcneill

Nadeem has a Margin Account with his Stock Broker with a 2:1 margin. He originally deposited $250,000 into the account and his broker lent him $250,000 so he purchased $500,000 worth of Bell Canada stock. He just received a margin call to inform him that his Bell stock has dropped to $450,000 and he is "out of margin". What is the best way for Nadeem to bring his account back into line? Sell $50,000 worth of Bell stock and pay off $50,000 on the loan
Sell $75,000 worth of stock and pay off $40,000 on the loan.
Sell $25,000 worth of stock and pay off $25,000 on the loan.
Sell $10,000 worth of stock and pay off $10,000 on the loan.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 21:00
Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.
Answers: 1
question
Business, 22.06.2019 07:30
When the national economy goes from bad to better, market research shows changes in the sales at various types of restaurants. projected 2011 sales at quick-service restaurants are $164.8 billion, which was 3% better than in 2010. projected 2011 sales at full-service restaurants are $184.2 billion, which was 1.2% better than in 2010. how will the dollar growth in quick-service restaurants sales compared to the dollar growth for full-service places?
Answers: 2
question
Business, 22.06.2019 10:10
An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?
Answers: 3
question
Business, 22.06.2019 20:00
Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be:
Answers: 2
You know the right answer?
Nadeem has a Margin Account with his Stock Broker with a 2:1 margin. He originally deposited $250,00...
Questions
question
English, 20.02.2022 08:20
question
Mathematics, 20.02.2022 08:20
question
Mathematics, 20.02.2022 08:30
Questions on the website: 13722361