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Opening margin and a maintenance margin of 25 percent

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Reference no: EM131129120

You want to buy 100 shares of a stock currently trading at $50 per share. Your brokerage firm allows margin sales with a 50% opening margin and a maintenance margin of 25%. What does this mean? If you close your position with the shares at $53.50, what is your return?

Amazon.com issued an initial public offering in May 1997.
Prior to its IPO, the following information on shares outstanding was listed in the final prospectus:

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In the IPO, the firm issued 3,000,000 new shares. The initial price was $18.00/share with investment bankers retaining $1.26 as fees. The final first-day closing price was$23.50.  

Reference no: EM131129120

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