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lys-0071 [83]
2 years ago
10

A customer has a margin account that shows a market value of $190,000 and a debit balance of $90,000. in addition, the account h

as special memorandum account of $5,000. the long market value at maintenance is
Business
1 answer:
vodka [1.7K]2 years ago
3 0

A maintenance margin is a minimum equity an investor ought to preserve withinside the margin account after the acquisition has been made. Hence,  the long market value at maintenance in this case is $120,000.

<h3>What do you mean by long market value?</h3>

Long market value at maintenance refers to the point where an account must fall (in market value) to reach minimum maintenance (25% of market value). ;

The maintenance margin is far presently set at 25% of the full value of the securities in a margin account as in step with Financial Industry Regulatory Authority (FINRA) requirements.

To calculate the <em> </em>long market value at maintenance,  divide the debit balance by .75 ($90,000 / .75 = $120,000)

Hence,  the long market value at maintenance is $120,000.

Learn more about long market value at maintenance:

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<span>A purchase of an asset on account increases assets. The assets account is increased due to the new addition of purchased asset. It also increases the liability section because it was purchased on account. Any purchase, addition or acquisition of assets will increase the assets account while any removal or disposal of assets decreases it.</span>

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4 0
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8 0
3 years ago
The balance in Unamortized Discount on Bonds Payable
Irina-Kira [14]

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4 0
4 years ago
Consider the markets for ball-point pens and the market for "rollerball" pens. Suppose that, due to an increased cost of the met
Vladimir79 [104]

Answer:

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