Assume an investor buys 100 shares of a stock at $80 per share for $8,000 of stock on 50% margin and the maintenance margin is 30%. By purchasing $8,000 of a stock on 50% margin, the investor must put up $4,000 of cash (or other equity) and, thus, borrows $4,000 (referred to as the "debit balance").

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This is correct. With a 50% margin, the investor must put up 50% of the purchase price ($80 per share x 100 shares = $8,000) as cash or other equity, which in this case is $4,000. This means that the investor is also borrowing $4,000 (the debit balance). The maintenance margin is the minimum amount of equity that must be maintained in the account, which is usually set at 30% of the total value of the securities held in the account.

Assume an Investor Buys 100 Shares of a Stock at $80