Given the maintenance margin is 25%. Assume an investor purchases $12,000 worth of stock at $200 per share. 50% is on margin. SHOW WORK.
Calculate the price of the stock in order to receive a margin call. _________
Who sets initial margin limits? ______________
Who sets maintenance margin requirements? _____________
True or False. Margin Funds borrowed from the broker are at the “call money rate” plus a service charge.