$150,000 long market value
$(100,000) debit balance
$50,000 credit balance
No short interest at present Reg T margin requirements:
A. The owner of the account can expect a margin call.
B. If the account owner wanted to buy $10,000 in stock, she would be able to do so only after depositing $5,000 in cash or $10,000 in securities.
C. The equity in the account exceeds the margin requirement.
D. The SMA funds cannot be withdrawn until the margin requirement is met.
Correct answer: C
The account is not below the maintenance margin requirement; there is enough cash in the SMA that the investor need not deposit additional funds.
Learn more about the disparity index, a technical momentum indicator that uses the relationship between current prices and ...
Learn the difference between an initial margin requirement and a maintenance margin requirement and how these affect an investor's ...
Learn how purchasing stock on margin works, and understand the risk associated with margin accounts that make the strategy ...
Learn about the debt-to-equity ratio and why this metric is widely considered the most useful reflection of a company's capital ...
Open trade equity (OTE) is the equity in an open futures contract.
Any ratio used to calculate the financial leverage of a company ...
Indicators are statistics used to measure current conditions ...
A technical indicator that combines aspects of candlestick analysis ...
The ratio of ceded insurance balances to policyholders’ surplus. ...
A form of technical analysis that looks at the range between ...