Series 7  General Securities Representative Exam
Preview Mode
Your new client just sold short $8000 worth of ABC stock. What is the initial margin requirement?
$8,000
A
$4,000
B
$6,154
C
$4,300
D
Explanations
Reg T requires 50% of the amount of securities shorted or $2,000; whichever is greater. The initial margin requirement is $4,000. This is different than the TOTAL margin requirement, which is the amount of the short sale $8000 + an additional 50%; which would make the total margin requirement $12,000
Pricing
Basic
Part of the questions for each course

 Course
 Questions

 SIE
 20 of 150

 Series 6
 30 of 500

 Series 7
 50 of 625