Your new client just sold short $8000 worth of ABC stock. What is the initial margin requirement?

Explanations

Reg T requires 50% of the amount of securities shorted or $2,000; whichever is greater. The initial margin requirement is $4,000. This is different than the TOTAL margin requirement, which is the amount of the short sale $8000 + an additional 50%; which would make the total margin requirement $12,000