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.
Learn about the 200 simple moving average (SMA), how it is utilized by traders and analysts, and why it is considered to ...
The correct answer is d. The investor opened the spread strategy with a net debit of $600. When he/she closes the 40 call ...
The correct answer is D). When an agent moves from one broker-dealer's employ to another, all parties are responsible for ...
The correct answer is d The market value of the person's equity is equal to the market value of the securities plus the credit ...
The correct answer is b. Under these circumstances, the broker-dealer is not required to register with the state and the ...
The correct answer is b. I, II and III are correct since all parties are required to notify the Administrator.
The amount in a margin account that is owed to the broker, minus ...
A special account where excess margin generated from a client's ...
The short term interest rate charged by banks on loans extended ...
A type of order carried out by a broker-dealer which involves ...
A brokerage account in which the broker lends the customer cash ...
The balance on a loan or depositary account. A simple average ...