An investor short sells 100 shares of a stock for 20 per


Question: An investor short sells 100 shares of a stock for $20 per share. The initial margin is 50%, and the maintenance margin is 30%. The price of the stock falls to $12 per share. What is the margin, and will there be a margin call?

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Accounting Basics: An investor short sells 100 shares of a stock for 20 per
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