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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 has special memorandum account of $5,000. the long market value at maintenance is

Sagot :

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.

What do you mean by long market value?

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 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.

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