Eek, didn't do well on this, either 7/15 on Margin Accounts.
Missed 4, 5, 9, 10, 11, 13, 14, 15.
missed a ? on what happens when a restricted account is declared. i got 1/2 the ? - that it has fallen below 50% LMV - correct; missing the part which she must do for any further purchases...which i erroneously said deposit 100%. she only needs to deposit 50%.
missed ? on what happens to DR and EQ balances when SMA is used to purchase stock on margin (DR goes up by full amt of margin plus excess, not just excess) and (Equity balance is not effected.
LMV does not increase when interest or dividends are paid to margin accounts.
missed two (one regarding a short sale going down, the other LMV going up), i.e. LMV of a long acct goes up, creating an excess amt put into an SMA. the LMV goes down, what happens to the SMA? nothing, b/c it is a "DR" and the DR doesn't fluctuate with LMV. (only with payments or interest, etc.) SMAs only decrease if a withdrawal is made or securities are purchased w/it.
? on calculating excess. reg T requires 50% of SMV on short accounts. if SMV = 1900 then 1900 x .50 = 950. if EQ = 1800 then excess is EQ - 50 % x SMV. 1800 - 950 = $850. i think i had used CR to calc the 50%, instead of SMV.
a question on combined equity, which = LMV - SMV + CR - DR.
finally a ? on a nonequity corporate bond, which i could not remember the formula for, and just guessed.
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