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You are bearish on Bark River Machine and Tool Company. You give your broker $7,500 to establish your margin account. You sell short two
You are bearish on Bark River Machine and Tool Company. You give your broker $7,500 to establish your margin account. You sell short two round lots (200 shares) for $60 per share, January 1st. On December 1st, a dividend of $2 per share was paid. On December 31st, you covered the short sale by buying the stock for the price of $75. You paid $.25 per share in commissions for each transaction and earned 0 percent interest on your margin account. 2 3 4 Bark River Machine and Tool Company 5 Market Price, January 1 6 Dividend, December 31 $60.00 $2.00 7 Market Price, December 31 $65.00 8 9 Broker 10 Commission, per Share 11 Maintenance Margin 12 13 3456 Investor 14 Money Invested in Margin Account $7,500 15 Shares Sold Short 200 16 Most economists see the U.S. turning into a buyer's housing market in 2023. Here's whe 0.35
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