Short Margin Accounts Flashcards
1
Q
Short sales _______ permitted in cash accounts.
A
ARE NOT
2
Q
SMA in a short account =
A
equity - 50% of market value
3
Q
Formula for a short margin account is:
A
Credit - Short MV = Equity
4
Q
For every $1 decline in MV or a short position, _____ is created in SMA
A
$1.50
5
Q
If a short margin account is restricted and a covering purchase is made, ____ of that must be retained to increase the ______
A
50% must be retained to increase the equity
6
Q
Maintenance call formula for short margin account =
A
credit balance / 1.3 = MV at maintenance
