Apply Margin Requirements
Series 7 · Flashcards
SERIES 7 · FLASHCARDS
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QUESTION
What is the market value formula for a long margin position if a customer buys
N
N
N
shares at price
P
P
P
?
QUESTION
Which requirement is met by depositing cash or marginable securities: a Reg T call or a maintenance call?
QUESTION
Calculate short equity percentage: credit
C
=
$
30,000
C = \$30{,}000
C
=
$30
,
000
and
M
V
=
$
24,000
MV = \$24{,}000
M
V
=
$24
,
000
. What is equity
%
\%
%
?
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ANSWER
25
%
25\%
25%
. Short equity percentage is equity divided by market value, measuring the buffer against price rises in the short position.
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