Mr. Aley bought 320 shares of Apple at $40 per share; he bought the stock at the initial margin of 62%. The stock is now trading at $58.52 per share, and the federal reserve has recently lowered the initial margin requirement to 51%. Alev now wants to do a little pyramiding and buy another 320 shares of stock. What is the minimum amount of equity that he will have to put up in this transaction?

Mr. Aley bought 320 shares of Apple at $40 per share; he bought the stock at the initial margin of 62%. The stock is now trading at $58.52 per share, and the federal reserve has recently lowered the initial margin requirement to 51%. Alev now wants to do a little pyramiding and buy another 320 shares of stock. What is the minimum amount of equity that he will have to put up in this transaction?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 43P

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