Question: An investor short sells 100 shares of a stock for
An investor short sells 100 shares of a stock for $20 per share. The initial margin is 50%. Ignoring transaction costs, how much will be in the investor's account after this transaction if this is the only transaction the investor has undertaken and the investor has deposited only the required amount?
Answer to relevant QuestionsAn 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 ...Elmo Inc.’s stock is currently selling at $60 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that Courtney Schinke realizes if she makes a 100-share ...List each of the major averages or indexes prepared by (a) Dow Jones & Company (b) Standard & Poor’s Corporation. Indicate the number and source of the securities used in calculating each average or index. In what two ways, based on the number of shares transacted, do brokers typically charge for executing transactions? How are online transaction fees structured relative to the degree of broker involvement? How would you access each of the following types of information, and how would the content help you make investment decisions? a. Prospectuses b. Back-office research reports c. Investment letters d. Price quotations
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