If a client has a debit balance of $30,000 and a credit balance of $60,000, what can be inferred about their margin account?

In this scenario, a client with a debit balance of $30,000 and a credit balance of $60,000 demonstrates a positive equity situation in their margin account. The equity in a margin account is determined by subtracting the debit balance from the credit balance. This means the client's equity can be calculated as follows:

Equity = Credit Balance - Debit Balance

Equity = $60,000 - $30,000

Equity = $30,000

Since the resulting equity is positive ($30,000), it indicates that the client has more value in their investments (the credit balance) than what they owe (the debit balance). This positive equity is an essential indicator of financial health in a margin account, suggesting that the client is not in a precarious position regarding their investments.

In contrast, circumstances like a margin call typically arise when equity falls below a certain threshold, indicating risk; hence, while that might not be the case here, the positive equity reveals that the client is in a stable position with their margin account.