Finra Exam Series-7 Topic 4 Question 49 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 49
Topic #: 4

[All Series-7 Questions]

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 equity in Bubba's account?

A$500

B$20,000

C$20,500

D$37,000

Show Suggested Answer

Suggested Answer: B

$20,000. The equity in a short margin account is equal to the credit balance minus the short market value. SMA is not considered when computing equity.

by An at May 09, 2022, 04:25 AM

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