Apply Margin Requirements
Series 7 · Flashcards · Application
SERIES 7 · FLASHCARDS
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QUESTION
Calculate short equity: credit
C
=
$
15,000
C = \$15{,}000
C
=
$15
,
000
and current market value
M
V
=
$
11,000
MV = \$11{,}000
M
V
=
$11
,
000
. What is equity?
QUESTION
Identify if a long account meets maintenance:
M
V
=
$
16,000
MV = \$16{,}000
M
V
=
$16
,
000
and debit
D
=
$
13,000
D = \$13{,}000
D
=
$13
,
000
.
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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