Recently, You Sold 1,000 Shares of Stock for $21,400

question 104

Multiple Choice

Recently, you sold 1,000 shares of stock for $21,400. The sale was a short sale with an initial margin requirement of 60%. The maintenance margin is 30%. The stock is currently trading at $27.50 a share. What is your current margin position in this stock?

• A)24.51%
• B)28.11%
• C)32.09%
• D)43.98%
• E)46.69%

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Definitions:

Finance Department

A division within an organization responsible for managing financial actions including budgeting and investment strategies.

CFO

Chief Financial Officer, a senior executive responsible for managing the financial actions of a company.

Collateralized

The provision of an asset or property as security for the repayment of a loan, reducing the risk for the lender.

Business Loan

A loan specifically intended for business purposes, helping companies finance operations, equipment, expansion, or other business needs.