You Short Sold 600 Shares of a Stock at $52

question 54

Multiple Choice

You short sold 600 shares of a stock at $52 a share. The initial margin requirement is 75% and the maintenance margin is 35%. What is the amount of your total liability for this transaction as initially shown on your account balance sheet?

• A)$8,640
• B)$17,500
• C)$22,210
• D)$31,200
• E)$36,400

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Definitions:

Market Equilibrium

Occurs when the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Socially Optimal Level

An economic condition where resources are allocated in a way that maximizes the overall benefit to society, considering both efficiency and equity.

Regulation

A rule or directive made and maintained by an authority.

Taxation

The process by which governments charge fees on individuals and corporations to fund public services and infrastructure.