SIE practice questioneasyAccount Types – Margin Accounts
Which of the following account types allows an investor to borrow money from the broker-dealer to purchase securities?
- ACash account
- BRoth IRA account
- C401(k) account
- DMargin account✓ Correct answer
Explanation
Why D — Margin account
Margin accounts allow customers to borrow funds from the broker-dealer. Cash, Roth IRA, and 401(k) accounts don't permit borrowing for securities purchases.
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