Respuesta :
If the maintenance margin is 30%, the greatest percentage decrease in the stock price before you receive a margin call is 57%.
The maintenance need is another name for the maintenance margin. It is clear from the phrase itself that it refers to the bare minimum equity that must be preserved.
At the price of $60 per stock, the margin is at 70%.
60 / 0.7 = 85.714
Therefore the 100% is 85.714.
85.714 * 0.30 = 25.714
$25.714 is the lowest price before you will receive a margin call.
60 - 25.714 = 34.286
34.286/60 = 57%
The Maintenance Margin: What Is It?
The Financial Industry Regulatory Authority (FINRA) mandates that maintenance margin, which is the minimum equity an investor must keep in a margin account after a purchase has been made, be set at 25% of the total value of the assets in the account.
A maintenance margin call is what, exactly?
An investor who receives a margin call from their broker is required to add more funds or securities to their account in order to bring it up to the maintenance margin, which is the minimum value that must be maintained in order to avoid a loss.
Learn more about Maintenance Margin: https://brainly.com/question/15412029
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