Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
Regulation T is set at 50%. Bubba’s account contains long positions in the following securities with the prices listed
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000

If Bubba wants to buy 100 shares of DUM at $30 per share, how much additional money must be deposited?
  1. $3,000
  2. $1,500
  3. $2,000
  4. $0
Explanation
Answer: D - $0. The cost of Bubba’s purchase is $3,000 (100 x $30). But Reg T only requires 50% in Bubba’s account and he has that.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz