Question: Hope you can help me to answer these question in detail. Thank you. a) Explain why retail investors were regarded as noise traders in the

Hope you can help me to answer these question in detail.

Hope you can help me to answer these question in detail. Thank you.

a) Explain why retail investors were regarded as noise traders in the GameStop frenzy in early 2021, or why their trading was derided as gambling. b) What are the risks to investing in penny stocks traded on the over-the-counter market? c) Suppose you bought 200 shares of a $50 stock and borrowed the maximum amount of moneygiven an initial margin requirement of 50%. I. If the stock price increases to $60 per share, what will be your equity position in the stock? II. If the maintenance margin is 25%, what is the margin call price? III. Suppose the stock drops to $30 per share, how much margin call you will receive

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

preparing earnings per share data for 2020. The net income for the year ended December 31, 2020, was E17.13 (LO 3) (EPS with Convertible Bonds and Preferred Shares) Mininova Corporation is $400,000...

I'm in serious need of help in my accounting class (acc205) . I'm falling behind and I need help with this weeks assignment. for week three for the may-june month . can someone please help me ....

lecture: domestic and economic policy. In this lecture we're going to cover domestic and economic policy. So if we think about the need demand response model, this is the response that governments...

Please read the three articles under attatched. Then answer the following questions Thank you What does Chapter 11 mean for J. Crew and Neiman Marcus? Is the shift to online shopping a permanent one?...

Chapter 1 Location \"Location, Location, Location!\" Chapter Objectives On completion of this chapter the reader will understand: The influence that location has on occupancy The relationship between...

Please Follow the Instructions Subject English 103 Com/Critical Thinking 1. Analyze: In at least words , post a response to the assigned reading by analyzing the text (this is a close reading to find...

please reas the instruction instructions are below the. write a report after reading the article only responsibilties of CEO CEO/President Job Title: CEO/President FLSA Status: EEO Code: Salary...

Accounting technologies and sustainability assessment models Jan Bebbingtona, Judy Brownb, Bob Framec, aCentre for Social and Environmental Accounting Research, University of St Andrews, St Andrews...

Please provide a maximum one-page summary of how we can analyze the cost of capital for our project (below) vis--visthe peer-reviewed research article attached. Consider risk as you decide. What...

Please help with the discussion below: ** Each of the 3 questions below only need to beabout two-threepara graphs but packed full of information, no fluff. **Attached below are a few readings from...

This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee....

In a BOD test, 5 mL of wastewater (DO = 0.0) is mixed with 295 mL of diluting water (DO = 9.0 mg/L). After 5 days' incubation of the mixture, DO = 5.2 mg/L. What is the BOD5 of the wastewater? Assume...

Among the principal topics related to the accounting for the property, plant, and equipment of a company are acquisitions and retirements. Required: a. What expenditures should be capitalized when...

View Policies Current Attempt in Progress A company with high rate of return on sales should consider the inventory sold when the payment for goods is received. it can reasonably estimate the amount...

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...