Question
In: Finance
Not long ago, Jack Edwards bought 300 shares of Almost Anything Inc. at $ 41.69 per...
Not long ago, Jack Edwards bought 300 shares of Almost Anything Inc. at $ 41.69 per share; he bought the stock on margin of 62 %. The stock is now trading at $ 62.59 per share, and the Federal Reserve has recently lowered initial margin requirements to 53 %. Jack now wants to do a little pyramiding and buy another 350 shares of the stock. What is the minimum amount of equity that he'll have to put up in this transaction?
The minimum amount of equity that he'll have to put up in this transaction is $__
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Expert Solution
Shareholder’s equity is that portion of capital which belongs to the shareholder’s or the owner of the company. It is also known as the net worth of the company and identified into two parts that is contributed capital and earned capital.
Therefore, Jack Edwards provide minimum balance of investment in the form of equity is $5,907.
jeff jeffy answered 1 year agoRelated Solutions
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