SIE practice questionmediumAccount Types: Margin and Short Sales
A customer wants to sell shares short. Which account type is REQUIRED?
- AMargin account✓ Correct answer
- BCash account
- CRetirement account
- DCustodial account
Explanation
Why A — Margin account
Short sales require a margin account because the customer borrows shares to sell. Cash, retirement, and custodial accounts cannot be used for short sales.
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