An investor short sells 100 shares of a stock for $20 per share. The initial margin is

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An investor short sells 100 shares of a stock for $20 per share. The initial margin is 50%, and the maintenance margin is 30%. The price of the stock falls to $12 per share. What is the margin, and will there be a margin call?

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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 28, 2015 03:29 AM

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An investor short sells 100 shares of a stock for $20 per share. The initial margin is

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Margin is the account equity divided by the cost to cover The account equity would be the i...View the full answer

Fundamentals of Investing

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