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Mnenie [13.5K]
3 years ago
14

The Federal Reserve System and the New York Stock Exchange regulations currently require the short seller to have an initial mar

gin of at least _______ of the price of the stock: 10% 25% 30% 50%
Business
1 answer:
lutik1710 [3]3 years ago
8 0

Answer:

Correct answer is 50%

Explanation:

The appropriate response is half.  

The Regulation T of the Federal Reserve Board requires the equalization for all short deal records to be at any rate 150% of the estimation of the protections at the time the deal is started.  

This implies when the short deal is started, as we are selling the offers first, our record will have the 100% estimation of the offers sold (as we receipts of cash from selling) in addition to an extra edge prerequisite of half of the estimation of the short deal.  

For instance, on the off chance that I am short selling an offer whose cost is $100, at that point when I short sell the offer, my record equalization will become $100, as receipts of the deal.  

Along these lines, at the hour of inception of offer, my record equalization ought to be 150% of the estimation of short deal = 150% of $100 = $150. The separation of this sum is  

100% of $100 = $100, which gets credited to my record  

in addition half of $100 = $50, which is the edge necessity at the inception of short deal.  

In this way, Initial edge necessity is atleast half of the cost of the stock.  

The student ought not befuddle the underlying edge necessity with the base upkeep edge.  

The base support edge required to be kept up is 25%. This implies the short dealer ought to consistently have an edge (not balance) of 25% in the record. In the event that the edge goes beneath 25%, at that point the edge require the distinction sum is actuated, which the short dealer is required to pay to keep on keeping her situation in the market unaltered.  

Be that as it may, beginning edge required to be kept up is half.

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Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special
11Alexandr11 [23.1K]

Answer:

The answer is false

Explanation:

Breadth, refers to the number of product lines  offered by a firm

6 0
3 years ago
Hushovd Iron Works has collected the following data for its Thunderbolt line of​ products: Direct materials standard 15 pounds p
Hitman42 [59]

Answer:

The direct material quantity variance is $10,800 favourable.  (the options in the question are not correct).

Explanation:

The direct materials quantity variance represents a difference between what was actually produced and the standard or idea that should have been produced especially with regards to the use of direct materials.

To calculate material quantity variance

Step 1:Calculate the Standard Usage of Material

Formula= (Actual Units of Finished goods Purchased x Standard Price of Material per unit)

= 4,000 units x 15 Pounds

= 60,000 Pounds

This means the standard material usage is 60,000 pounds

Step 2: Now calculate the Direct Material Quantity Variance

Formula= (Standard Material Usage - Actual Material Usage) x The Standard Price per Unit of Material

= 60,000 pounds (computed in step 1) - 40,000 pounds (given in the question)

= 20,000 pounds x $0.54

=$10,800

Since the standard Material is higher than the actual material usage, it means that the answer is as follows;

The direct material quantity variance is $10,800 favourable.

Kindly note that the multiple options in the question above are for a different set of figures and a different question.

6 0
2 years ago
Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1,000, 20 years to maturity and is selling fo
NikAS [45]

Answer:

The YTM is less than 10%

Explanation:

If a coupon rate of a bond is greater than its yield to maturity (YTM), the bond is said to trade at a premium. The Bond's current price would be greater than its Face value

If a coupon rate of a bond is less than its yield to maturity (YTM), the bond is said to trade at a discount. The bonds current price would be less than its face value

In this Question, the bond's current price ($1,197.93) is greater than its face

($1,000) which means that the bond is trading at a premium. Therefore, we can conclude that the bond's YTM is less than its coupon payment. In this question the coupon rate is 10%, therefore the YTM should be less than 10%.

8 0
3 years ago
[The following information applies to the questions displayed below.] Laser Delivery Services, Inc. (LDS), was incorporated Janu
Rasek [7]

Answer:

a.

Date          Account Details                                  Debit                       Credit

                 Cash                                                $27,000

                 Common Stock                                                                 $27,000

b.

Date          Account Details                                  Debit                       Credit

                 Land                                                 $9,000

                  Notes Payable                                                                  $9,000  

c.

Date          Account Details                                  Debit                       Credit

                 Vehicles                                           $18,000

                 Cash                                                                                 $2,000

                 Notes Payable                                                                 $16,000

d.

Date          Account Details                                  Debit                       Credit

                 Vehicles                                               $800

                 Cash                                                                                    $800

e. This does not require a journal entry as it is a personal transaction.

3 0
3 years ago
Which of the following are effective means of aligning management goals with shareholder interests?
gizmo_the_mogwai [7]

Answer:

E. I, II, III, and IV

Explanation:

All of the mentioned strategies would work.

Employee stock option provides the enthusiasm and energy to perform good among employees. This is beneficial for the company and shareholders as well.

The threat of takeover, scares the shareholders in losing their share, and effective voting right. Also the management feels threaten as the new company might replace them with the management personnel they desire.

Management bonuses help management to get a boost in energy and accordingly motivates to work good, also the shareholders desiring performance will find it effective.

The threat of proxy fight engages both the parties to behave properly towards each other and respect each other.

3 0
3 years ago
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