Determine the price at which there will be a margin call

Reference no: EM133715876

Question 1) You are an investor, which to buy 150 shares of XYZ stocks through a broker in the trading floor. Currently the price of the share is $65 and decided to use margin option. The initial margin is set for 50%, while the maintenance margin is 40%. If the price goes down to $60, what will be your equity margin? Determine the price at which there will be a margin call? If the share price goes up to $75, what will be the rate of return?

Question 2: Discuss the distinction between the Primary and the Secondary Markets. Why do you think liquidity of Secondary Market is important for the activities of primary markets.

Reference no: EM133715876

Questions Cloud

Ratio analysis of each of your four companies : Ratio analysis of each of your four companies and the performance of portfolio during the duration of the project. This section must explain the key possible

Is issuing shares for financing realistic for a start-up : Every day in the nightly newscasts, the report of the stock market indexes are posted and the changes in the value of the stock market commented.

Imperative in making correct diagnosis : Knowledge of reference ranges for hematologic values is imperative in making a correct diagnosis. Does it perpetuate health disparity?

What are details of problem and who is impacted by problem : What are the details of the problem? Who is impacted by the problem? When did this problem begin, and when could it reasonably be resolved?

Determine the price at which there will be a margin call : Discuss the distinction between the Primary and the Secondary Markets. Why do you think liquidity of Secondary Market is important for the activities of primary

What are the things m&m should be considering : Evaluate M&M goals with respect to how specific, measurable, action-oriented, realistic and time bound they are. Are these a short term or long-term goals

Discuss key items you would communicate differently : Discuss key items you would communicate differently to internal and external audiences, and explain why.

Will you choose a different technique for the two groups : What is the best approach to relaying this information to employees and civilians? Will you choose a different technique for the two groups?

Evaluate the impact that the identified legal risks have : Evaluate the impact that the identified legal risks and liability issues could have on stakeholders if your chosen telemedicine application is implemented.

User Account

All Pages