You Sell 100 Shares of PGD Short at a Price

question 38

Short Answer

You sell 100 shares of PGD short at a price of $50 per share. How much is your initial margin, given margin requirements of 40%? If the stock declines to $30 per share, what is your percentage gain or loss on the initial equity?

---

Definitions:

Litigation Expenses

Costs incurred during the legal process, including attorney fees, court fees, and other related expenses.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights and responsibilities.

Close Corporations

A type of business structure where the number of shareholders is limited, and stock is not publicly traded, often managed in a hands-on manner by its owners.

Fiduciaries

Individuals, organizations, or entities that hold a position of trust and are required to act in the best interest of another party, such as a trustee or financial advisor.