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

question 83

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 percent.The maintenance margin is 30 percent.The stock is currently trading at $27.50 a share.What is your current margin position in this stock?

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

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Definitions:

Accounting Break-Even

The point at which total revenues equal total expenses, and there is no profit or loss, specifically from an accounting perspective that includes non-cash expenses.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Fixed Costs

Costs that remain constant regardless of the amount of products or services a company produces, including expenditures like rent, wages, and insurance fees.

Variable Cost

Financial obligations that adjust based on the level of manufacturing.