Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

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.

Learn more about long market value at maintenance:

https://brainly.com/question/15057471

#SPJ1