You believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares short. If the current share price is $58, construct the equity account balance sheet for this trade. Assume the initial margin is 60 percent. Assets Liabilities and account equity Proceeds from sale Short position Initial margin deposit Account equity Total Total
You believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares short. If the current share price is $58, construct the equity account balance sheet for this trade. Assume the initial margin is 60 percent. Assets Liabilities and account equity Proceeds from sale Short position Initial margin deposit Account equity Total Total
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 11P
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You believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares short. If the current share price is $58, construct the equity account balance sheet for this trade. Assume the initial margin is 60 percent.
Assets | Liabilities and account equity | ||
Proceeds from sale | Short position | ||
Initial margin deposit | Account equity | ||
Total | Total |
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