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?
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