What is the minimum maintenance requirement for a short account if the stock is trading above $5?

The minimum maintenance requirement for a short account when the stock is trading above $5 is determined by the guidelines established by regulatory bodies. For stocks priced at or above $5, the maintenance requirement is set at the greater of either 30% of the market value of the short position or $5 per share.

In the context of the chosen answer, if the stock is valued at a price higher than $5, the maintenance requirement will be calculated as 30% of the market value, but it cannot drop below $5 per share. This ensures that there is sufficient margin to cover any potential increases in stock price that would result in losses for the short seller.

Thus, the selected answer reflects the correct understanding of this requirement and provides the necessary cushion for risk management in short selling scenarios.