Anita wants to buy $10,000 of securities in her margin account. Her advisor has informed her that she must pay a minimum of $7,000 in cash and maintain a minimum equity position of 30%. The initial margin requirement is ________% and the maintenance margin is ________%.

Question

Quizplus · Accepted Answer

The initial margin requirement is the percentage of the purchase price that must be paid in cash, which is $7,000 out of $10,000, or 70%. The maintenance margin is the minimum equity position that must be maintained, which is 30%.

Anita Wants to Buy $10,000 of Securities in Her Margin