Solved: Stock price can decline before he receives a margin call, Finance Basics

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Stock price can decline before he receives a margin call

Question:

Nelson purchased 1,300 shares of stock for $12.75 a share. The initial margin requirement is 70 percent and the maintenance margin is 40 percent. What is the maximum percent by which the stock price can decline before he receives a margin call?

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Finance Basics: Stock price can decline before he receives a margin call

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Finance Basics: Stock price can decline before he receives a margin call

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