Mark Short Sold 500 Shares of Stock at $12

question 28

Multiple Choice

Mark short sold 500 shares of stock at $12.50 a share. The initial margin is 80% and the maintenance margin is 50%. The stock is currently selling for $9.80 a share. What is Matt's account equity at this time? Ignore margin interest.

• A)$2,070
• B)$4,590
• C)$6,350
• D)$8,950
• E)$10,510

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Definitions:

Lower-Level Needs

Basic physiological and safety needs in Maslow's hierarchy that must be satisfied before higher-level psychological needs.

Motivation

The method that starts, directs, and sustains actions aimed at achieving goals.

Needs-Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization, in that order.

21st Century

The period extending from January 1, 2001, to December 31, 2100, characterized by rapid advancements in technology, globalization, and changing social norms.