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Not long​ ago, Jack Edwards bought 300 shares of Almost Anything Inc. at $41.86 per​ share;...

Not long​ ago, Jack Edwards bought 300 shares of Almost Anything Inc. at $41.86 per​ share; he bought the stock on margin of 63% The stock is now trading at $62.36 per​ share, and the Federal Reserve has recently lowered initial margin requirements to 50%.

Jack now wants to do a little pyramiding and buy another 400 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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Solution:

The minimum amount of equity that​ he'll have to put up in this transaction is $7764

ekkarill92 answered 1 year ago
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