Series 7 practice questionhardMargin Accounts 20
For a short sale with current market value of $6,000, the minimum equity requirement is generally:
- A$1,500
- B$3,000
- C$1,800✓ Correct answer
- D$9,000
Explanation
Why C — $1,800
FINRA maintenance for most short equity positions is 30% of the current market value. Thirty percent of $6,000 equals $1,800.
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