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Anjali's Stockbroker Called to Inform Her of a Margin Call

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Anjali's stockbroker called to inform her of a margin call that requires that she pay $1,000. This indicates that the value of Anjali's stock has

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Definitions:

Quick Ratio

A liquidity metric that indicates a company's capacity to pay its current liabilities without needing to sell inventory, calculated as (cash + marketable securities + accounts receivable) / current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the business's operating cycle.

Current Liabilities

Obligations or debts that a company must pay within a year.

Inventory

The goods and materials a business holds for the ultimate goal of resale or repair.

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