An investor makes an initial deposit of 9000 into a brokerage account to fund stock purchases and then uses margin to purchase 110 shares of stock for firm XYZ at a price 126.00 per share. If the brokerage firm sets a maintenance margin at 30%, to what price can the stock decline before the investor is issue a margin call?

Answer rating: 100% (QA)

To calculate the price at which the stock can decline before the investor receives a margin call we ... View the full answer