Suppose you purchase 500 shares of stock at $84 per share with an initial cash investment of

Question:

Suppose you purchase 500 shares of stock at $84 per share with an initial cash investment of $15,000. If your requires a 30 percent maintenance margin, at what share price will you be subject to a margin call? If you want to keep your position open despite the stock price plunge, what alternatives do you have?

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...