'Initial equity' presentation slideshows

Chapter 19

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Margin

Margin. Long position: You bought 1000 shares of common for $30 per share on margin. Initial margin = 50% Maintenance margin = 35% Initial MV = 1000*$30 = $30,000 Loan = 30,000 * .5 =$15,000 Initial Equity = 30,000 * .5 = $15,000. If price went up to $40 what is: Your equity?

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