Bubba has a short margin account with equity of $15,000 and a credit balance of $28,000. What is the current NYSE minimum equity maintenance requirement on Bubba's account?
A)$3,900
B)$4,500
C)$3,250
D)$3,750

Question

Quizplus · Accepted Answer

$3,900. The requirement for short accounts is 30% of the current market value. The market value is $13,000 ($28,000 - $15,000). Multiplying by 30% equals $3,900.

Bubba Has a Short Margin Account with Equity of $15,000