Question

A customer sells short 1,000 shares of DT at $60 a share on Monday, October 14 and deposits the Regulation T margin requirement. If on October 23 the stock is trading at $75 a share. What would be TRUE about the customer selling?

Answer 1

Adjusted Oct 23rd

Maintenance call will be issued, i.e. ,

$ 75k x 0.3 = 22.5 k

Equity only = 15k

Therefore, the account will be adjusted on October 23rd and the margin maintenance call will be issued.