The Fed has just increased the required margin requirement from 50 percent to 60 percent.
a. If an investor buys 100 shares of stock at $60 per share and the price subsequently falls to $50, what is his loss in dollars and in percentage form? Ignore interest costs and commissions charged by the broker.
b. If the price increases to $70 per share what will his/her gross profit amount to in dollars and as a percentage?

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The Answer of The Fed has just increased the required margin requirement from 50 percent to 60 percent.
a. If an investor buys 100 shares of stock at $60 per share and the price subsequently falls to $50, what is his loss in dollars and in percentage form? Ignore interest costs and commissions charged by the broker.
b. If the price increases to $70 per share what will his/her gross profit amount to in dollars and as a percentage?

The Fed Has Just Increased the Required Margin Requirement from 50