Series 7 - General Securities Representative Exam

Preview Mode

A client has a long margin account with: market value: $100,000, debit balance: $46,000. What is the client's buying power?

$8,000
A
$4,000
B
0
C
$6,000
D

Explanations

The buying power is twice the SMA. The SMA is the equity ($54,000) minus half of the market value ($50,000) = SMA of $4,000. $4,000 X 2 = $8,000 for Buying Power