Series 7 - General Securities Representative Exam
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Your oldest client bought $126,000 of stock and wired in $63,000 for the margin requirement. His debit balance is now $63,000. How low can the value of this stock go before the investor has to deposit more funds to maintain the position?
$31,500
A
$84,000
B
$94,500
C
$48,462
D
Explanations
Debit balance divided by .75 is the formula that tells you the minimum equity. 126K / .75 = $84,000. If the value of the stock drops below this level, the investor must must deposit more funds to keep the position