Buying on Margin

Initial Equity Investment 600

Amount Borrowed 400
Initial Stock Price 10
Shares Purchased 100
Cash Dividends During Holding Period 0
Initial Margin Percentage 60%
Maintenance Margin Percentage 30%

Rate on Margin Loan 12%

Holding Period in Months 12

Ending Stock Price 15

Return on Investment
Capital Gain on Stock 500.00
Dividends 0.00
Interest on Margin Loan 48.00
Net Income 452.00
Initial Investment 600.00
Return on Investment 75.33%

Margin Call:
Margin Based on Ending Price 73.33%
Price When Margin Call Occurs $5.714

Return on Stock without Margin 50.00%

20,000.00
20,000.00
40.00
1000
0.00
50.00%
30.00%

7.00%
12

#REF!
0.00
1400.00
#REF!
20000.00
#REF!

#REF!
$28.57

#REF!
Short Sales

Initial Investment 50,000

Beginning Share Price 100.00
Number of Shares Sold Short 1,000

Dividends Per Share 0

Initial Margin Percentage 50%
Maintenance Margin Percentage 30%

Ending Share Price 90.00

Return on Short Sale

Gain or Loss on Price 10000
Dividends Paid 0.00
Net Income 10000
Return on Investment 20.00%

Margin Positions
Margin Based on Ending Price 66.67%

Price for Margin Call 115.38

240000.00
120.00
4000.00

0.00
50.00%
25.00%

85.00

140000.00
0.00
140000.00
58.33%

111.76%

144.00