Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
With the Regulation T requirement at 50%, a firm wishes to impose house rules that require a minimum equity of 40%. Which of the following is true?
  1. this cannot be implemented because the level is below Reg T
  2. this cannot be implemented since maintenance requirements are only 25% of equity for long positions
  3. this is permissible
  4. this action must be approved by the FRB and FINRA
Explanation
Answer: C - this is permissible. Firms may establish house rules as long as they are at least as strict as the minimum maintenance requirements. Reg T only dictates an initial requirement and does not address minimum equity.
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