Question
Stefano has bought 100 shares of XYZ Corporation at $25 per share in his new margin account. In the next few days, the price of
Stefano has bought 100 shares of XYZ Corporation at $25 per share in his new margin account. In the next few days, the price of XYZ shares suddenly jumped to $30 per share. What is the impact on Stefano's margin account?
a)He must close out the position
b)He will receive a margin call
c)There is no impact on his margin account
d)He can withdraw funds from his account
Stefano has bought 100 shares of XYZ Corporation at $25 per share in his new margin account. In the next few days, the price of XYZ shares suddenly jumped to $30 per share. What is the impact on Stefano's margin account? He must close out the position He will receive a margin call There is no impactimpn his margin account He can withdraw funds from his accountStep by Step Solution
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
