Finra Series-7 Exam - Topic 4 Question 117 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 117
Topic #: 4

[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

Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much how much value of additional securities must Bubba deposit in lieu of depositing cash?

A$3,000

B$6,000

C$9,000

D$15,000

Show Suggested Answer

Suggested Answer: C

$9,000. Since the required cash to deposit is $4,500 and Reg T is 50%, Bubba may deposit $9,000 of securities.

by Wilford at Nov 22, 2025, 02:30 AM

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Tamesha

2 months ago

I feel like it's a lot of math for an exam question!

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Craig

2 months ago

Right! 50% of the total purchase price is key here.

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Isabella

2 months ago

Remember, he has to cover the new purchases and the margin requirement.

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Nida

2 months ago

Why $6,000? I thought it was $9,000.

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Laquanda

2 months ago

I think Bubba needs to deposit $6,000.

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Craig

2 months ago

This question is tricky! Need to calculate the margin.

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Kris

3 months ago

Are you sure about that? I thought it was more.

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Jacki

3 months ago

Totally agree, $6,000 makes sense!

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Beckie

3 months ago

I think Bubba needs to deposit $6,000.

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Nohemi

4 months ago

$3,000? That's like pocket change for Bubba. He should just ask his buddy Cletus to spot him the cash.

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Deangelo

4 months ago

$15,000? Yikes, Bubba's gonna need a second job to cover that one.

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Aron

4 months ago

$6,000, easy peasy. Bubba's got this, as long as he doesn't try to buy a yacht with the extra securities.

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Glory

4 months ago

Regulation T, huh? Sounds like a fancy way of saying "Bubba, you gotta cough up some more cash."

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Jade

4 months ago

Hmm, looks like Bubba needs to dig deeper into his pockets. $9,000 should do the trick.

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Princess

4 months ago

I feel like I should subtract the debit balance from the total market value to find the net equity, but I'm not completely confident in how that ties into the additional securities needed.

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Amira

5 months ago

This question feels similar to one we practiced where we had to determine how much equity was needed for a new purchase. I think I need to calculate the total cost first.

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Veronika

5 months ago

I remember something about Regulation T requiring a 50% margin, but I'm not sure how to calculate the additional securities needed.

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Eugene

5 months ago

This seems straightforward enough. I just need to plug the numbers into the right formulas and I should be able to get the right answer.

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Frederic

5 months ago

I've seen questions like this before. I'm pretty confident I can solve this, but I'll double-check my work to make sure I don't miss anything.

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Jose

5 months ago

Okay, let me think this through. I need to calculate the total value of the new purchases and then figure out how much additional collateral is required based on the 50% Regulation T.

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