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Zorluk: ZorMargin Accounts and Borrowing Requirements

A customer opening a new margin account places a first-time order to short sell 5050 shares of an exchange-listed stock priced at $36\$36 per share. Under Federal Reserve Regulation T and FINRA rules, what is the required initial margin deposit for this transaction?

  1. A
    $900\$900
  2. B
    $1,800\$1,800
  3. $2,000\$2,000Cevap
  4. D
    $2,700\$2,700

Cevap

$2,000\$2,000
For short sale transactions in a new margin account, FINRA rules mandate a minimum initial equity deposit of $2,000\$2,000. Although Regulation T requires 50%50\% of the trade value (which equals $900\$900 for a $1,800\$1,800 short sale), the investor must satisfy the stricter FINRA minimum of $2,000\$2,000. Unlike long purchases valued below $2,000\$2,000, short sale positions do not allow a deposit less than $2,000\$2,000.

Adım Adım Çözüm

1
Calculate total short position value
50 shares×$36/share=$1,80050 \text{ shares} \times \$36/\text{share} = \$1,800
Determine total transaction value to evaluate Regulation T requirements.
2
Calculate Federal Reserve Regulation T initial margin requirement
50% of $1,800=$90050\% \text{ of } \$1,800 = \$900
Regulation T mandates a standard initial margin of 50% of the trade value.
3
Apply FINRA minimum initial equity rule for short sales
$2,000\$2,000
Under FINRA rules, the minimum initial equity required to open a margin account for a short position is 2,000.Unlikelongpurchasesunder2,000. Unlike long purchases under 2,000 (which allow 100% of the purchase price as the requirement), short sales always require a minimum deposit of $2,000 unless subject to low-priced stock minimums.
4
Determine required deposit
\text{Greater of } \$900 \text{ and } \$2,000 = \$2,000
The customer must deposit the greater of the Regulation T requirement (900)ortheFINRAminimuminitialdeposit(900) or the FINRA minimum initial deposit ( 2,000).

Anahtar Kavram

FINRA Initial Margin Minimum Equity Requirement for Short Positions
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Konular

Margin Accounts and Borrowing Requirements