Question

If an investor uses the full amount of margin available, the equity in a margin account used for a stock purchase can be found as ________. A.market value of the stock - amount owed on the margin loanB. market value of the stock + amount owed on the margin loanC. market value of the stock  margin loanD. margin loan x market value of the stock

Answer 1

Answer:A.market value of the stock - amount owed on the margin loan.

Explanation:

The concept above is explained by the concept of margin loan availability. This describes the amount in the margin account which is presently available for buying securities on the margin or for buying the amount in quantity that is available for withdrawal.