Question
You just purchased 5,000 shares of company X which is currently trading at $34 per share, using your margin account. If the stock price declines
You just purchased 5,000 shares of company X which is currently trading at $34 per share, using your margin account. If the stock price declines to $26 per share, how much do you need to have in your account to comply with the maintenance margin of 40%?
How much do you have in your trading account? Assume an initial margin of 50%.
How much do you need to deposit into your trading account to comply with the maintenance margin of 40% and an initial margin of 50%?
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
4th edition
1405888202, 978-0273711490, 273711490, 978-1405888202
