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8 Cards in this Set
- Front
- Back
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Mark to Market
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Must be done every day at closing price.
As MV changes, so does equity in account |
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What does SMA stand for?
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Special Memorandum Account
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What is the formula for SMA?
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SMA = 50% of MV - Debit
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Buying Power = ____ x SMA
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= 2 x SMA
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What is an account that has fallen below initial margin, but which has not yet reached minimum margin?
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Restricted Margin
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An account below the 50% initial margin is in "restricted" account. What is the only effect of restriction?
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is that 50% of the proceeds of any sale must be retained to reduce the debit
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what is the dollar amount of a maintenance margin that need not be sent if lower than?
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$1,000
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What % of SMA is credited on a cash deposit?
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100%
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