1. You have $500 to invest. You decide to open a margin account with your brokerage. The account has an 80% initial margin requirement. You have decided to invest in Firewood Inc. stock when the price is $5 per share.
What will the debit be when you start your account? (i.e. how much will you borrow) (Enter only a number, no symbols)
2. You have $500 to invest. You decide to open a margin account with your brokerage. The account has an 80% initial margin requirement. You have decided to invest in Firewood Inc.stock when the price is $5 per share.
How many shares can you buy?