SIE practice questionmediumCash vs. Margin Accounts
A cash account allows an investor to:
- APurchase securities only with full payment✓ Correct answer
- BBuy securities using borrowed funds
- CTrade options on margin
- DShort sell stocks
Explanation
Why A — Purchase securities only with full payment
Cash accounts require full payment. Borrowed funds, margin trading, and short selling require a margin account.
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