You purchased 1,000 shares of common stock on margin at R40 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of R28? %?
You purchased 1,000 shares of common stock on margin at R40 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of R28? %?
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 1DTM
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You purchased 1,000 shares of common stock on margin at R40 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of R28?
%?
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