in the EOC questions of Reading 46, it says in question 21 that “stock was bought on 75% margin”. My intuitive understanding of this wording would be that 75% of the purchase money has been financed through margin, i.e. the purchaser paid own equity worth 25% of the payment.
However, looking at the question’s solution, it means that the purchaser has paid 75% of the price himself and 25% has been financed through margin (i.e. loan).
Have I mixed things up, or the book?
Thanks a lot, and good luck to you all next week!