Question

Consider an investor who purchases 100 shares of Company XYZ stock at $100 per share. The investor funds half the purchase price with their own money and buys the other half on margin, bringing the initial cash outlay to $5,000. One year later, the share price become $200 One year later share price become $50 Comment on the above mentioned both situations Support your answer with calculation What would be the pros and cons of margin financing

Answer 1

Explanation:

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Answer 2

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