ABC stock – 200 shares. CMV $40/share
PDQ stock – 100 shares. CMV $30/share
LIB stock – 100 shares. CMV $50/ share
Debit balance -- $6,400
If this customer used any SMA in the account to its maximum by purchasing stock, the DR balance in the account would be:
correct answer is b.
Any time an investor uses SMA, he/she is borrowing money from the broker-dealer and increasing the DR balance. SMA has a purchasing power equaling the SMA x 2 ($1,600 x 2 = $3,200). The broker-dealer will loan the client an additional $3,200 to purchase stock. Add this to the existing DR balance of $6,400 + $3,200 = $9,600.
The correct answer is b) Insider trading would include information that is material and non-public. Certainly, a poor earnings ...
The correct answer is a. I should be the the other way around: convertible bond holders can exchange their bonds for shares. ...
The correct answer is c): The operating margin is a very useful test of the efficiency of corporate management. Operating ...
Free info on financial certification exams including study guides, exam questions, and much more!
A examination to ensure a candidate is qualified to become a ...
A person who prepares investigative reports on equity securities. ...
An exam required for individuals seeking to engage in off-exchange ...
One who provides financial advice or guidance to customers for ...
An exam offered by the Financial Industry Regulatory Authority ...
An exam given by the Financial Industry Regulatory Authority ...