After researching Best Buy common stock, Sally Wang is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 400 shares of Best Buy. At the time of the sale, a share of common stock had a value of $160. Three months later, Best Buy is selling for $152 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $64. What is her profit for this short transaction?

Vijay

In March of this year, Ermine felt the market had nowhere to go but down.  Accordingly, she sold short $15,000 of IGM stock.  Her broker requires a 60% margin on short sales.  Ermine covered her short position when the value of her shorted IGM shares fell to $13,000.  During the time Ermine’s short position was open, IGM paid a dividend of $500.  What percentage return did Ermine earn on her initial investment?

I dont understanf why the total return was marked wrong here

Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%.a. What is the margin in Dée’s account when she first purchases the stock?b. If the share price falls to $30 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call?c. What is the rate of return on her investment?

Peter Gunderson bought 2,000 shares of stock in a transportation company at $45.10 per share. Ten months later he sold the stock at $78.22 per share.  If he had to pay his broker a commission of $85, how much profit did Peter make on this investment?  Round your answer to the nearest dollar.

On March 15, Marcos placed a good-'til-canceled order to buy 200 shares of ABC at $10 a share. ABC sold between $10.50 and $11.00 on that day. Over the following two months the stock price continued to rise and Marcos forgot about the order. After the markets closed on June 6, some bad news concerning ABC was released. The stock opened on June 7 at a price of $8.00 a share. Your friends and you are having a discussion about the status of Marcos’s order on June 7. The following views are expressed: 1. That the order was cancelled on May 15 because it had not been executed within the allowable two-month time period. 2. That the order was executed on March 15 at $10.50 a share since that was the best available price of the day. 3. That the order was executed on June 7 at a price of $10.00 a share. Resolve the matter by either choosing a correct view from the above  .

Lauren has a margin account and deposits $49,994 into it. Assume the prevailing margin requirement is 40%, interest and commisions are ignored, and the Gentry Wine Corporation is selling at $35 per share. a) How many shares can Lauren purchase using the maximum allowable margin? b) What is Lauren's profit (loss) if the price of Gentry's stock       1) rises to $45 and Lauren sells the stock?       2) falls to $25 and Lauren sells the stock? c) If the maintenance margin is 30% to what price can Gentry Wine fall before Lauren will receive a margin call?

Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%.  Required:a. What is the margin in Dée’s account when she first purchases the stock?   b. If the share price falls to $48 per share by the end of the year, what is the remaining margin in her account?   c. If the maintenance margin requirement is 30%, will she receive a margin call?multiple choice Yes No Correct d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)       Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%.  Required:a. What is the margin in Dée’s account when she first purchases the stock?   b. If the share price falls to…

Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%.  Required:a. What is the margin in Dée’s account when she first purchases the stock?   b. If the share price falls to $48 per share by the end of the year, what is the remaining margin in her account?   c. If the maintenance margin requirement is 30%, will she receive a margin call?multiple choice Yes No d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)