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11 January, 13:40

You believe the price of Rose, Inc., stock is going to fall and you've decided to sell 1,000 shares short. If the current share price is $47, construct the equity account balance sheet for this trade. Assume the initial margin is 65 percent. (Do not round intermediate calculations. Input all amounts as positive values.)

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  1. 11 January, 16:34
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    Proceeds from sale = 1000 * $47 = $47,000

    Initial margin = $30,550 * 0.65 = $30,550

    So, Assets

    Proceeds from sale: $47,000

    Initial margin deposit: $30,550

    Total: $77,550

    And, Liabilities and account equity

    Short position: $47,000

    Account equity: $30,550

    Total: $77,550
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Home » Business » You believe the price of Rose, Inc., stock is going to fall and you've decided to sell 1,000 shares short. If the current share price is $47, construct the equity account balance sheet for this trade. Assume the initial margin is 65 percent.
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