Miguel Torres purchases 100 shares of Can'tWin.com for $47.25 per share, using as little of...
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Accounting
Miguel Torres purchases 100 shares of Can'tWin.com for $47.25 per share, using as little of his own money as he could His broker has a 51% initial margin requirement and a 32% maintenance margin requirement. The price of the stock falls to $28.65 per share. What does Miguel need to do? To get the account back to the maintenance margin requirement of 32%, Miguel must add $ 367.05. (Round to the nearest cent.) You need to subtract the new debit balance from the initial debit balance. If the amount is positive, this amount must be added to the account to get the account back to the maintenance margin requirement of 32% nitial debit balance Market value of the securities at time of purchasex (1-Initial margin) New debit balance New market value of the securities x (1 - Maintenance margin) OK
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