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

$84,000

$94,500

$48,462

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

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Series 7 - General Securities Representative Exam

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?

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