You Purchased 800 Shares of Stock for $49

question 87

Multiple Choice

You purchased 800 shares of stock for $49.20 a share.The initial margin requirement is 65 percent and the maintenance margin is 35 percent.What is the lowest the stock price can go before you receive a margin call?

• A) $9.27
• B) $14.54
• C) $17.22
• D) $21.88
• E) $26.49

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Definitions:

Unrealized Increase

The increase in value of an asset that has not yet been sold or disposed of. It represents potential profit, but it is not reflected in the financial statements until the gain is realized.

APB Opinion No. 22

Guidance issued by the Accounting Principles Board on the disclosure of accounting policies, requiring firms to include a summary of significant accounting policies in their financial statements.

Subsequent Event

An event that occurs after the balance sheet date but before the financial statements are issued, which may affect the company's financial position or performance.

Financial Disclosure Requirements

Regulations and standards mandating companies to disclose certain financial and operational information, ensuring transparency and aiding stakeholders in informed decision-making.