A restricted margin account is one in which, the equity has fallen below the minimum maintenance requirement, the equity has fallen below the $2,000 minimum equity requirement, the customer is temporarily prohibited from accessing SMA. T requires a down payment of $4,000 and creates a loan from the broker to the client of $4,000, referred to as the customer’s debit balance. the purchase will be canceled for non-payment: his account will be frozen for 90 calendar days. The Series 7 exam — the General Securities Representative Qualification Examination (GS) — assesses the competency of an entry-level registered representative to perform their job as a general securities representative. T margin. If loading fails, click here to try again. According to the Internal Revenue Code, if exercised, this investor would now be long 100 shares of stock with a ‘net’ cost of the strike price minus the premium. All of these statements are correct with respect to ex-dividend dates under FINRA’s rules. Once triggered, they become market orders and will be executed at the next available price. Your customer Mr. Furyk has expressed an interest in adding technology stocks to his portfolio. By Steven M. Rice . principal is repaid at maturity in US dollars. In this case, the ‘cheap stock rule’ dictates that a minimum of $2.50 per share is required when shorting stock priced at $2.50 or below. A mortgage broker is not a lender of money, but rather is a person who is in the business of arranging for loans. How do I get my Series 7? the firm will do a sell-out, at Mr. Watney’s expense, and freeze his account for 90 calendar days. I'll cut to the chase, its a BEAR no pun intended. control stock may be sold over a 90 day period in an amount not to exceed the greater of 1% of the issuer’s outstanding shares or the average weekly volume over the 4 week period preceding the sale. Which of the below statements is correct? The Uniform Practice Code of FINRA sets forth requirements regarding deliveries, eligibility for issuer distributions, and a wide variety of rules pertaining to dealer to dealer day to day activities. no extension of time is necessary under these circumstances: he has two additional business days in which to make payment. For example, the SIE and Series 7 top-off exam take the same amount of time as the previous Series 7 exam. Inflation risk can be a factor, but in the early years of owning the bond, inflation normally is a small factor. control stock may be sold without limit so long as the insider has filed Form 144 with the SEC at the time of the sale and the sale is not based upon material non-public information. Only answer D pays periodic interest. because his instructions are giving you limited discretion as to price and time, you do not require written discretionary power, you would be required to obtain branch managerial approval before entering this order, you may place the order as you see fit, however Mr. Furyk retains the right to break the trade if he disagrees with the execution, you must have written discretionary power in order to do what this client wants. In anticipation of a weaker dollar, one would expect. “you’ll own 3 for every 2 you now own.” The fraction 3 over 2, 3/2, three-halves, put into percentage terms is 150%. Each S&P 500 Index option contract with a 2000 strike price provides protection for $200,000 of portfolio value, which is 2000 times the multiplier of 100. The Internal Revenue Code states that buying a put option to protect a long stock position showing an unrealized short term capital gain wipes out the holding period that has accumulated to that point in time. The last stop in the flow of the order is the Cashier dept. Major job functions covered on the Series 7 … He informs you that he likes ABC Technology, Inc. and has instructed you to buy it when you think the time and price are right and to buy as much of it as you believe is reasonable when considering his portfolio mix and investment objectives. When shorting stock, loss results from a rise in CMV. This portfolio requires 40% more options: 7 long puts. Because the November contract will have a larger premium, this spread is a Credit Spread. By failing to discuss this, the rep has engaged in an unfair and unethical practice known as a ‘breakpoint sale.’. I'm on my 6th week of studying and still scoring in the 60s. The question is not asking how many he’ll own after the split: it is asking how many ADDITIONAL shares he’ll own, which is 200 additional shares. When comparing a broker-dealer and an investment advisor, which of these statements is most accurate? The execution takes place at 48.95. A short put provides premium income which provides a partial or limited amount of upside hedge. Your firm has hired a new candidate to be a municipal securities registered representative. Liquidity is normally not a concern, since there are always buyers for US T-bonds. An investment in United States Treasury bonds may be subject to which of the following taxes? Place the following in their proper order in the handling of an order. This strategy is a calendar spread, a/k/a a time or a horizontal spread. I keep hearing about people that only study for 3 weeks and pass. If her date of hire was March 1st, and she passed the appropriate qualification examination required by the MSRB on March 31st, when is the earliest date on which she may begin to engage in the sale of municipal securities with public customers?