You believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares short. If the current share price is $58, construct the equity account balance sheet for this trade. Assume the initial margin is 60 percent.   Assets   Liabilities and account equity Proceeds from sale   Short position   Initial margin deposit   Account equity   Total   Total

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 believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares short. If the current share price is $58, construct the equity account balance sheet for this trade. Assume the initial margin is 60 percent.

 

Assets   Liabilities and account equity
Proceeds from sale   Short position  
Initial margin deposit   Account equity  
Total   Total
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