Assume that the maintenance margin is 30 percent, with a 50 percent initial margin, and that the
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Assume that the maintenance margin is 30 percent, with a 50 percent initial margin, and that the price of the stock declines from $90 to $80 per share. Equation 5-3 is used to calculate actual margin:
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Actual margin% = 43.75% = Current value of securities - Amount borrowed Current value of securities ($8,000-$4,500) $8,000 (5-3)
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Related Book For
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
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