You Just Sold Short 700 Shares of Highway Construction Stock

question 85

Essay

You just sold short 700 shares of Highway Construction stock for $31 a share. The initial margin requirement is 70 percent and the maintenance margin is 35 percent. Construct a balance sheet depicting this transaction.

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Definitions:

Inflation-Adjusted

Refers to figures or financial metrics that have been altered to reflect inflation's effects, presenting a more accurate picture of real value or purchasing power.

Money Market

A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded.

Subsector

A specific part of a larger sector or industry, categorized by similar business activities or products.

Capital Market

A financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.