Series 7 practice questionmediumMargin Accounts 4
For an existing short equity position with current market value of $8,000, the FINRA maintenance equity requirement is generally:
- A$2,000
- B$4,000
- C$2,400✓ Correct answer
- D$12,000
Explanation
Why C — $2,400
FINRA maintenance for most short equity positions is 30% of the current market value. Thirty percent of $8,000 equals $2,400.
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