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P2.8 (similar to) Assume that an investor buys 100 shares of stock at $48 per share, putting up a 64% margin a. What is the debit balance in this transaction? b. How much equity capital must the investor provide to make this margin transaction? a. The debit balance in this transaction is s (Round to the nearest dollar)

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Answer #1

a. Securities’ price = $48 x 100 shares = $4,800

Debit balance = $4,800(1 - 0.64) = $1,728

b. Margin = $4,800 - $1,728 = $3,072

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