purchase You pur snares of Company mmon stock on margin at $30 per share. Assu e initial margin is 50%, and the maintenar argin is 30%. Assume the stock pays no divide nore interest on margin. Below what stock pr vel would you get a margin call?"

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You purchased 1000 shares of Company B's
common stock on margin at $30 per share. Assume
the initial margin is 50%, and the maintenance
margin is 30%. Assume the stock pays no dividend;
ignore interest on margin. Below what stock price
level would you get a margin call?'
"1
Transcribed Image Text:You purchased 1000 shares of Company B's common stock on margin at $30 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Assume the stock pays no dividend; ignore interest on margin. Below what stock price level would you get a margin call?' "1
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