You want to buy 1,000 shares of Company XYZ for $5 per share but don't...
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You want to buy 1,000 shares of Company XYZ for $5 per share but don't have the necessary $5,000 -- you only have $2,500. If you buy the shares on margin, you essentially borrow the other half of the money from the brokerage firm and collateralize the loan with the Company XYZ shares. If the maintainance margin is 25%, then what cast of investor getting the margin call? (if the interest rate is 5%)
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