... Chapter 12 Market Microstructure and Strategies Financial Markets and Institutions, 7e, Jeff Madura Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved. 2 Chapter ... year, the stock is sold at a price of $55 per share. What is the return on the margin transaction? %14 25$ 50$.27$25$55$ = +−− = +−− = INV DLOANINVSP R 10 Computing the Return on A Margin Purchase ... NYSE reached a peak of $278 billion in March 2000 and declined to $165 billion by August 2001 14 Stock Market Transactions (cont’d) Short selling In a short sale, investors place an order...