SIE - Securities Industry Essentials Exam
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Which of the following can be transacted in an UTMA account with a $10,000 balance?
Long 1000 shares of a $15 stock
A
Long 500 shares of a $18 stock
B
Selling a naked call option and receiving $1500 in premium
C
Shorting 100 shares of a $5 stock
D
Explanations
( A ), ( C ) & ( D ) are all margin account related activities. Margin trading is not allowed in an UTMA account.