Brokerage commission to purchase the stock

Assignment Help Business Management

Reference no: EM1319441

Shake Venture wants to purchase 1,000 shares of an internet technology stock for $15 a share. She figures that she needs $15,000 plus $90 brokerage commission to purchase the stock. She currently has $8,000 of liquidity in her money market account.

A. What can Shakee borrow on margin in order to make the transaction?

B. If the stock jumps to $50 per share within a week, how much will Shakee realize in profit after paying her broker.

C. If the stock dropped to $5 per share, rather than increasing to $50, and the broker put in the margin call, how much must Shakee pay the broker.

D. Base on the beginning account balance of $8,000 what is Shakee's loss?

Reference no: EM1319441

Questions Cloud

Computing test statistic for child-care benefits : Compute the appropriate test statistic to test Ho: p = 80/100 vs. Ha: p > 80/100.

Estimating value of infectivitypathogenicity and virulence : Using your knowledge of infectious disease epidemiology, quantify the pattern of disease X in this group, i.e., what are the infectivity, pathogenicity, and virulence of disease X?

What is relationship among a firm income and profit : Illustrate what is the relationship among a firm's total income, profit also total cost?

Determining time complexity : Specify the function of procedure DOES SOMETHING? What is the time complexity of the procedure?

Brokerage commission to purchase the stock : Shake Venture wants to purchase 1,000 shares of an internet technology stock for $15 a share. She figures that she needs $15,000 plus $90 brokerage commission to purchase the stock. She currently has $8,000 of liquidity in her money market account..

Perform the indicated operation : Perform the indicated operation

Total amount of dividends paid : How much in dividend is paid for each share of preferred stock? What is the total amount of dividends paid to preferred stockholders? How much is the dividend payment for each share of common stock? What is the total amount of dividends paid to commo..

John believes to labor supply is highly elastic : ohn also Jeremy are utilitarian's. John believes to labor supply is highly elastic while Jeremy believes to labor supply is quite inelastic.

Removing the ambiguities in algorithms representation : Explain how the use of primitives helps in removing the ambiguities in an algorithm’s representation?

User Account

All Pages