Question of the Week

A brokerage customer has $10,000 in securities and a credit balance of $4,000. What is the equity in the person's account?

a) $4,000
b) $6,000
c) $10,000
d) $14,000
e) none of the above

Answer:

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 balance.

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