Question

A customer's short margin account shows the following balances: Credit Balance: $90,000 SMV: $50,000 SMA: $15,000 What would the adjusted SMA balance be in the account after a short cover of 100 shares of MMM stock at $100 in the account?

Answer 1

$20,000

Step-by-step explanation:

Short cover of 100 shares of MMM stock at $100 in the account = 100 shares x $100 = $ 10,000

And 50% of $10,000 = $5,000

SMA= $15,000 + $5,000 = $20,000