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"An investor has sold short stock worth $80,000 in a margin account, depositing the Regulation T margin requirement. If the market value of the stock falls to $65,000, what is the SMA in the account?"
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"An investor has sold short stock worth $80,000 in a margin account, depositing the Regulation T margin requirement. If the market value of the stock falls to $65,000, what is the SMA in the account?"

User Erik Pedersen
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3.6k points

1 Answer

5 votes

Answer:

$15000.

Step-by-step explanation:

The worth of stock that the investor sold = $80000

The fall in the market value of the stock = $65000

Since the value of the stock falls to $65000. thus, the SMA in the account can be calculated by eliminating the decreased amount from the stock value. Therefore, the SMA in the account will be 80000-65000 = $15000

User HenryJack
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