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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Account Types questions
- A grandmother opens an UGMA account for her grandson and deposits securities. Who is responsible for making investment…
- Which benefit is unique to traditional IRA accounts compared to taxable brokerage accounts?
- Which type of account allows an investor to borrow money from a broker-dealer to purchase securities?
- A parent opens a custodial account for a minor. Who is the legal owner of the assets in the account?