Series 7 - General Securities Representative Exam
A client has a long margin account with: market value: $100,000, debit balance: $46,000. What is the client's buying power?
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