SIE practice questionmediumAccount Types
Which account type allows an investor to purchase securities using both their own funds and borrowed funds from a broker?
- ACustodial account
- BCash account
- CRetirement account
- DMargin account✓ Correct answer
Explanation
Why D — Margin account
Margin accounts allow customers to borrow from the broker to buy securities, subject to Regulation T and maintenance requirements. Cash accounts require full payment, and custodial/retirement accounts can be either but don't inherently offer margin.
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