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Bubba has a short margin account with a short market value of $22,000, a credit balance of $42,000, and SMA of $500.
What is the NYSE minimum equity maintenance for this account?
Suggested Answer: C
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$6,600. The NYSE maintenance requirement on short margin accounts is 30%. Multiplying the short market value of $22,000 by 30% equals $6,600.
11 comments · newest first
SH
Shantell
1 year ago
Just to clarify, short market value is $22,000, right?
GE
Georgeanna
1 year ago
Definitely not $12,600, that's way too much!
LA
Lawrence
1 year ago
Wait, is it really that high? Seems off to me.
MI
Mireya
1 year ago
I think it's $6,600 based on the calculations.
JO
Joana
1 year ago
The minimum equity maintenance is usually 30% of the short market value.
LI
Linsey
1 year ago
If I remember right, the minimum equity maintenance for a short account is based on the short market value. I think it might be around $6,600, but I need to double-check.
CY
Cyril
1 year ago
I remember practicing a similar question where we had to calculate the maintenance margin, but I can't recall the exact percentages we used.
CH
Chantay
1 year ago
I think the NYSE minimum maintenance requirement is 30% of the short market value, but I'm not entirely sure how to calculate that correctly.
RO
Rodrigo
1 year ago
I feel like I saw a question like this in our review session, and I think the answer was $6,000, but I'm not completely confident about it.
ER
Ernie
1 year ago
Okay, let's see. I'm pretty sure the issue has to do with how the columns are set up on the form. I'll need to double-check that.
BR
Brice
1 year ago
This is a tricky one. I'm not super familiar with the Dynamics 365 for Customer Service routing rules, so I'll have to read through the options carefully. I'm leaning towards either option A or C, but I want to make sure I understand the implications of each before selecting an answer.