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A customer sells short 100 shares of ABC stock at $30 as an initial transaction in a margin account. The customer must deposit: A. $750 B. $1,500 C. $2,000 D. $3,000
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A customer sells short 100 shares of ABC stock at $30 as an initial transaction in a margin account. The customer must deposit:

A. $750
B. $1,500
C. $2,000
D. $3,000

User Greg Ellis
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1 Answer

1 vote

Answer:

The best answer is C.

Step-by-step explanation:

Regulation T initial margin to short stock is 50% of $3,000 = $1,500. However, since this is a new account, it must meet the minimum initial margin of $2,000 needed to open an account. Therefore, $2,000 must be deposited.

User BLC
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