Upgrade to remove ads
Margin notes 7 top off
Terms in this set (24)
How much can a broker dealer re- hypothecate?
140% of the debit balance in a customers margin account
Cash can be withdrawn from a margin account even without SMA. True or False
False, they must have SMA in the account
For shares in a margin account with a price of less than 5$, what must a customer maintain?
100% of SMV or 2.50 per shares, which ever is greater.
What is the only thing that affects equity in an account?
Market price change
Interest or loans to purchase securities are tax deductible when buying munis. True or False
If a margin account is restricted by$5,000 what actions must the owner take to make it unrestricted?
Deposit 5,000 in cash or 10,000 in fully paid marginable securities
What is the calculation for for SMA
equity - margin T 50% requirement
What must a broker dealer segregate in a margin account?
The excess securities above 140%
When must customers who wish to trade on margin sign a margin agreement?
Before trading can begin
When must the risk disclosure agreement in a margin account be provided
Before or at the time of opening a margin account. And it must be provided on an annual basis
What happens an extension is not granted by a dea and the?
The firm must sell thee securities and freeze the account for 90 days. The customer must have full payment o purchase anything further
What securities are exempt reg T requirements?
US treasuries, gov agency, and munis
What are the rules for a restricted account?
To purchase additional securities put up 50%
To withdraw securities from the account the customer must deposit cash equal to 50% of the securities withdrawn
If securities are sold in a restricted account, at least half the proceeds must be retained to the account to reduce the debit balance, also 50% is credited to the SMA
True or False, When the SMA line of credit is used, the debit the balance in a customers account is increased and equity falls?
When can SMA be not be used?
If it brings an account below the minimum maintenance level
What happens if a customer makes a non required cash deposit?
The full amount reduces the debit and is also credited to SMA
How much is SMA credited if non required securities are deposited?
What percent of a stock sale is credited to SMA
For ever dollar in SMA how much stock can be purchased
2 and the credit balance increases buy the full amount of stock purchased
What is the FINRA short margin call requiremnt?
In a short margin account that is short an account less than 5$ per share a customer is require to maintain what?
100% of SMV or 2.50 per share, whichever is greater
For stock trading above 5$ in a short margin account what are the minimum requirements?
Greater of 5 per share or 30%
How much must be deposited in an account using option spreads?
The max loss
True or False you can use proceeds from writing puts or calls to meet reg T requirement when opening an account
THIS SET IS OFTEN IN FOLDERS WITH...
Section 16 S7 Top off
Section 18 S7TO
Section 16 7 TO
YOU MIGHT ALSO LIKE...
Margin Accounts Rules
Series 7 - Chapter 7 - Cash and Margin Accounts
Series 7--Margin Accounts
Series 7--Chapter 6 Margin Accounts
OTHER SETS BY THIS CREATOR
Section 4 overall
Section 1 overall
Section 2 overall
OTHER QUIZLET SETS
BIO375: Exam 2
Civics Chapter One
Raditude #5- PACS and Communication System Fundame…