Suppose your brokerage account only has the following 2 stocks. Maintenance margin is 40%. Stock...

50.1K

Verified Solution

Question

Finance

image
Suppose your brokerage account only has the following 2 stocks. Maintenance margin is 40%. Stock A: Price = $75/share; 500 shares; Loan amount $30,000 Stock B: Price = $100/share ; 600 shares; Loan amount $10,000 Will you receive a margin call from your broker? Show all calculations

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students