The use of the internet to trade and underwrite securities
is expected to grow quickly
You purchased ABC stock at $45 per share. The stock is currently selling at $70. Your gains may be protected by placing a
Assume you purchased 100 shares of common stock at $50 per share. The initial margin is 40%. Your investment was
Assume you sold short 200 shares of common stock at $60 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock prices of $70?
Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.
increases transaction costs to the issuing firm, allows firms to register securities for sale for a two year period
A sale by Microsoft of new stock to the public would be a
seasoned new issue offering
You sell short 200 shares of Bad Co. at a market price of $55 per share. Your maximum possible loss is
A finalized registration statement for new securities approved by the SEC is called