Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra Series-7 Exam - Topic 3 Question 121 Discussion

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:100 ABC $30200 XYZ $70200 QBB $40200 KKK $25Total market value = $30,000Debit balance in the account = $12,000Net equity balance of the account = $18,000If Bubba wants to buy 100 shares of DUM at $30 per share, how much additional money must be deposited?
D) $0
A) $3,000
C) $2,000
B) $1,500

Finra Series-7 Exam - Topic 3 Question 121 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 121
Topic #: 3
[All Series-7 Questions]

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:

100 ABC $30

200 XYZ $70

200 QBB $40

200 KKK $25

Total market value = $30,000

Debit balance in the account = $12,000

Net equity balance of the account = $18,000

If Bubba wants to buy 100 shares of DUM at $30 per share, how much additional money must be deposited?

Show Suggested Answer Hide Answer
Suggested Answer: D

$0. The cost of Bubba's purchase is $3,000 (100 x $30). But Reg T only requires 50% in Bubba's account and he has that.


by Leatha at Jan 26, 2026, 11:00 PM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Winfred
2 months ago
He needs to deposit $1,500 more to meet the margin.
upvoted 0 times
...
Justa
2 months ago
So, for 100 shares of DUM at $30, that's $3,000.
upvoted 0 times
...
Bulah
2 months ago
Right! Regulation T means he needs 50% of the purchase price.
upvoted 0 times
...
Willie
2 months ago
This question is tricky! Need to calculate margin requirements.
upvoted 0 times
...
Cathrine
4 months ago
Are we sure about that? I thought it was more complicated.
upvoted 0 times
...
Fatima
4 months ago
Totally agree, that's straightforward math!
upvoted 0 times
...
Tijuana
4 months ago
Wait, how does that add up? Seems off.
upvoted 0 times
...
Shelba
4 months ago
So, he needs to deposit $1,500 for that purchase.
upvoted 0 times
...
Luisa
5 months ago
Regulation T requires 50% margin.
upvoted 0 times
...
Izetta
5 months ago
Bubba's got a lot of securities, but he's still gotta cough up some more cash to get those DUM shares. Maybe he can sell some of his KKK stock and use that to cover it? Just a thought!
upvoted 0 times
...
Bok
5 months ago
Alright, let's do this. If Bubba's got $18,000 in net equity and wants to buy 100 DUM at $30 per share, that's an additional $3,000 he needs to deposit. Simple math, folks!
upvoted 0 times
...
Elizabeth
5 months ago
Wait, Bubba's got a debit balance of $12,000? Dude's living on the edge, ain't he? Better hope he doesn't trip and fall into some more debt!
upvoted 0 times
...
Cherri
5 months ago
Okay, let's see here... Regulation T at 50%, Bubba's got $18,000 in net equity, and wants to buy 100 DUM at $30 per share. Time to break out the calculator!
upvoted 0 times
...
Quentin
5 months ago
Hmm, looks like Bubba needs to cough up some more dough to buy those DUM shares. Better start scrounging under the couch cushions!
upvoted 0 times
...
Ellen
6 months ago
I believe we need to find the new debit balance after the purchase and then see if it exceeds the equity requirement, but I'm a bit confused on the calculations.
upvoted 0 times
...
Hector
6 months ago
I practiced a similar question where we had to determine how much cash was needed for a new purchase, but I can't recall the exact steps.
upvoted 0 times
...
Bernardo
6 months ago
I remember something about needing to maintain 50% equity after a purchase, so we might have to figure out how much that is based on the new total.
upvoted 0 times
...
Elli
7 months ago
I think we need to calculate the new total market value after buying DUM, but I'm not sure how to factor in the Regulation T requirement.
upvoted 0 times
...
Erinn
7 months ago
I've seen problems like this before. I think if I carefully calculate the current margin, I can determine the additional deposit required for the new purchase. Gotta stay focused on the key details.
upvoted 0 times
...
Zachary
7 months ago
I'm feeling a little lost on this one. The different security prices and balances are making it hard for me to keep track. Maybe I should review my notes on margin trading before attempting this.
upvoted 0 times
...
Reena
7 months ago
Okay, let's break this down step-by-step. First, I need to figure out the total value of Bubba's current positions. Then I can calculate the margin requirement and see how much more he needs to deposit.
upvoted 0 times
...
Annelle
7 months ago
Hmm, I'm a bit unsure about how to approach this. Calculating the margin requirements and additional deposit needed seems tricky.
upvoted 0 times
...
Chandra
8 months ago
This looks like a pretty straightforward margin calculation problem. I think I can handle this one.
upvoted 0 times
Shawnee
1 month ago
Right! 50% of the purchase price, then adjust for equity.
upvoted 0 times
...
Von
1 month ago
Just need to calculate the margin requirement.
upvoted 0 times
...
Ezekiel
2 months ago
I agree, it seems simple enough.
upvoted 0 times
...
...

Save Cancel