Series 7 practice questionmediumMargin Accounts 3
What is the minimum maintenance equity in a long margin account with securities worth $5,500?
- A$2,750
- B$1,375✓ Correct answer
- C$1,650
- D$1,100
Explanation
Why B — $1,375
FINRA minimum maintenance for long equity positions is 25% of the current market value. Twenty-five percent of $5,500 is $1,375.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Information & Recommendations questions
- For a short sale with current market value of $8,000, the minimum equity requirement is generally:
- A customer buys stock on margin for $5,000 and deposits 50%. If the market value later falls to $4,500, the customer’s…
- A customer buys $8,000 of stock in a new margin account. Under Regulation T, the initial deposit requirement is:
- A customer buys $4,000 of stock in a new margin account. Under Regulation T, the initial deposit requirement is: