What is the maintenance margin

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Reference no: EM132014113

Suppose that the margin requirement is 50% and you purchase 300 shares of a $25 stock on a margin. There is no interest on the money you borrow, and there is no transaction fee.

If the value of your investment falls by 10%, what is your holding period yield?

Suppose your investment continues to fall, and you get a margin call when the stock price hits $15. What is the maintenance margin?

Reference no: EM132014113

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