Finra Exam Series-7 Topic 5 Question 61 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 61
Topic #: 5

[All Series-7 Questions]

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:

100 ABC $30

200 XYZ $70

200 QBB $40

200 KKK $25

Total market value = $30,000

Debit balance in the account = $12,000

Net equity balance of the account = $18,000

Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much how much value of additional securities must Bubba deposit in lieu of depositing cash?

A$3,000

B$6,000

C$9,000

D$15,000

Show Suggested Answer

Suggested Answer: C

$9,000. Since the required cash to deposit is $4,500 and Reg T is 50%, Bubba may deposit $9,000 of securities.

by Sharee at Nov 16, 2022, 03:27 AM

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