Currently, the price of Mattco stock is $30 a share. You have $30,000 of your own funds to invest. Using the maximum margin allowed of 50%, what is your percentage profit or loss if you purchase the stock and it rises to $33 a share (ignore dividends and taxes)

Question

Business

Maya Dunn

15 April, 02:30

Currently, the price of Mattco stock is $30 a share. You have $30,000 of your own funds to invest. Using the maximum margin allowed of 50%, what is your percentage profit or loss if you purchase the stock and it rises to $33 a share (ignore dividends and taxes)

+1

Answers (1)

Know the Answer?

Valeria Clarke · Answer 1

20%

Explanation:

Given that

Share price $30 per share

Amount invested $30,000

Number of shares purchased is 2000 which is come from

= 30,000 shares : 50% : $30

= 2,000 shares

Now Gain per share is $3 ($33 - $30)

So, Total Gain $6000

And, Amount invested is $30,000

So percentage of profit is

= Total gain : invested amount

= $6,000 : $30,000

= 20%