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What is a ‘short sale?’ Suppose you short 10,000 shares of stock at a price of $40. If the initial margin is 50% and the maintenance margin is 40%: (Margin = Equity/Share Value; Equity = Assets - Liabilities)

What is your initial deposit into your account?

At what price per share would you be subject to a margin call?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92400355

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