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26 August, 19:32

A customer sells short 100 shares of ABC stock at $30 as an initial transaction in a margin account. The customer must deposit:

A. $750

B. $1,500

C. $2,000

D. $3,000

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Answers (1)
  1. 26 August, 20:31
    0
    The best answer is C.

    Explanation:

    Regulation T initial margin to short stock is 50% of $3,000 = $1,500. However, since this is a new account, it must meet the minimum initial margin of $2,000 needed to open an account. Therefore, $2,000 must be deposited.
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Home » Business » A customer sells short 100 shares of ABC stock at $30 as an initial transaction in a margin account. The customer must deposit: A. $750 B. $1,500 C. $2,000 D. $3,000
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