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 percent.The initial margin requirement is ________ percent and the maintenance margin is ________ percent.

Question

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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 required, which is 30%.

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