Jessie bought a share of stock for $100. She borrowed $50 from her broker. There is a 25 percent maintenance margin requirement established by the brokerage fi rm she does business with. The price of...


Jessie bought a share of stock for $100. She borrowed $50 from her broker. There is a 25 percent maintenance margin requirement established by the brokerage fi rm she does business with. The price of the stock falls to $80. Will her broker put in a margin call to her, asking her to put up more funds? If so, how much more? What if the price falls to $50? In each case, if so, how much more?



May 26, 2022
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