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Basic Question 10 of 16

Minimum maintenance margin is the minimum proportion of ______.

A. equity to the total value of the margined stock
B. the loan amount to the total value of the margined stock
C. the current value of the margined stock to the original purchase price of the margined stock

User Contributed Comments 1

User Comment
robbiecow The MM = (Collateral - Loan)/Collateral
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

compare positions an investor can take in an asset

calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call

CFA® 2024 Level I Curriculum, Volume 3, Module 1.