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12 Cards in this Set
- Front
- Back
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If the account has excess equity, it creates |
SMA |
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if the account is restricted for regulation T purposes what affect does it have when a client buys? |
Pay 50% |
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if the account is restricted for regulation T purposes what affect does it have when a client sells? |
50% retention |
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if the account is restricted for regulation T purposes what affect does it have when a client withdraws securities? |
Deposit 50% |
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if the account has a maintenence call how can the client rectify it? |
Deposit Cash, securities, or sell securities already in the account |
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How do you calculate market value at maintenance for a long account? |
DR / .75 |
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How do you calculate market value at maintenance for a short account? |
CR / 1.30 |
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Four ways SMA in a long account increases |
1. Increase in market value of securities in account
2. deposit of fully paid securities (50% of market value applied to SMA) 3. Nonrequired cash deposit (1 for 1) 4. Sale of securities (50% of sale proceeds go towards SMA). |
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Way in wihch SMA in a long account decresases |
Purchase of securities with SMA or withdraw of cash from SMA |
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Minimum maintenance in a short account where the stock is trading under $5 per share |
the greater of 100% of SMV or 2.50 per share |
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Minimum maintenance in a short account where the stock is trading at or above $5 per share |
the greater of $5 or 30%
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minimum Reg T deposit for a Long margin account
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the lower $2000 or 100% of the cost of the securities (the requirement is waved) |
