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18 Cards in this Set
- Front
- Back
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(Ch. 06) margin… formula for mkt value at maintenance (long acct)
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DR / .75
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(Ch. 06) margin… formula for mkt value at maintenance (short acct)
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CR / 1.30
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(Ch. 06) re margin agreement.. What are the three parts?
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credit agreement (reqd) hyponthetication agree (reqd) loan conscent form (optional)
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(Ch. 06) re margin… what are the exceptions for Reg T
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govt's and munis (SRO requirements only)
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(Ch. 06) what is pattern day trade?
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4 or more trades in a 5 bus day period
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(Ch. 06) re margin, when is risk disclosure required?
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at acct opening and annual thereafter
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(Ch. 06) what is maintenace call execption
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$1000
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(Ch. 06) what does a maint call do
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brings acct back to minimum
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(Ch. 06) what is SMA buying power
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$1 of SMA buys $2 of stock (2 to 1)
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(Ch. 06) what increases SMA
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1- increase in MV of securities 2-deposit of paid securities (50%) 3-non req'd cash deposit 4-sale of securities (50% proceeds to SMA)
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(Ch. 06) what decreases SMA
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1-purchase of securities 2-w/d of cash (NOT mkt value decine)
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(Ch. 06) what doesn’t decrease SMA
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mkt value decline
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(Ch. 06) re initial long margin purchase… what to remember
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$0 to 2000= 2000 $2000 to 4000= 2000 greater than $4000 50%
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(Ch. 06) re initial margin purchase for short margin accts
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same as long except min is always 2000
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(Ch. 06) for long margin…. what is the Ret T %
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50% of LMV
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(Ch. 06) for long margin…. what is min maintenance %
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25% of LMV
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(Ch. 06) for short margin…. what is the Ret T %
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50% of LMV
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(Ch. 06) for short margin…. what is min maintenance %
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30% of LMV
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