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18 Cards in this Set

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