An 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 rises to $28 per share. What is the margin, and will there be a margin call?
Answer to relevant QuestionsCalculate the profit or loss per share realized on each of the following short-sale transactions. Assume that an investor buys 100 shares of stock at $50 per share, putting up a 60% margin. If the stock rises to $60 per share, what is the investor's new margin position? Discuss each of the following as they are related to assessing bond market behavior. a. Bond yields b. Bond indexes Identify the four main types of online investment tools. How can they help you become a better investor? Describe the basic philosophy and use of stock market averages and indexes. Explain how the behavior of an average or index can be used to classify general market conditions as bull or bear.
Post your question