Ed Delahanty purchased 500 shares of Niagara Corporation stock on margin at the beginning of the year for $30?

Question

Ed Delahanty purchased 500 shares of Niagara Corporation stock on margin at the beginning of the year for $30?

Answer 1

What Ed did not realize is that we are in a Bear Market. Ed's stock is now worth $3.50 a share.

Is this a margin question?

Ed would have to put up $7,500.00 cash (50% of $15,000. 500 shares @ 30/ share is $15,000 divide that by 2 (assuming standard margin) is $7,500.00 min required to purchase.

If the stock drops in value below $30, ED is going to be subject to margin calls.

http://www.investopedia.com/terms/m/marg...