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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

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Ellen
4 days 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.
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Hector
9 days 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.
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Bernardo
1 month 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.
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Elli
1 month 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.
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Erinn
1 month 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.
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Zachary
2 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.
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Reena
2 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.
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Annelle
2 months ago
Hmm, I'm a bit unsure about how to approach this. Calculating the margin requirements and additional deposit needed seems tricky.
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Chandra
2 months ago
This looks like a pretty straightforward margin calculation problem. I think I can handle this one.
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