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
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
Section: Chapter Questions
Problem 1PS
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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
Assets | Liabilities and account equity | ||
Proceeds from sale | Short position | ||
Initial margin deposit | Account equity | ||
Total | Total |
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