You Just Sold 1,200 Shares of Stock Short at a Price

question 65

Multiple Choice

You just sold 1,200 shares of stock short at a price per share of $13.50. The initial margin requirement is 60% and the maintenance margin is 30%. What is your initial equity position?

• A)$6,480
• B)$7,520
• C)$9,720
• D)$10,520
• E)$16,200

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Definitions:

Reporting Issuer

A corporation that has issued securities to the public and is obligated to disclose periodic financial information to regulatory agencies and shareholders.

Outstanding Voting Rights

The rights to vote that are held by shareholders of a company, which have not been exercised yet.

Self-Regulating Organizations

Entities that operate independently to enforce rules and standards within a particular industry or profession without direct government oversight.

Securities Regulation

The set of laws and regulations governing how securities are issued, bought, sold, and traded, primarily aimed at protecting investors.