Question

Remember in a short margin account, if you are given SMV without credit, just take ____ of the SMV and then add it to the SMV to find Credit.

A) 50%
B) 25%
C) 30%
D) 75%

Answer 1

In a short margin account, you can find the credit by taking a percentage of the SMV and adding it to the SMV.

Step-by-step explanation:

In a short margin account, if you are given the SMV (Stock Market Value) without credit, you can calculate the credit by taking a certain percentage of the SMV and adding it to the SMV. The correct percentage to use is 50%, so you would take 50% of the SMV and add it to the SMV. This will give you the total credit.