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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?

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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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Kris
11 hours ago
Are you sure about that? I thought it was more.
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Jacki
6 days ago
Totally agree, $6,000 makes sense!
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Beckie
11 days ago
I think Bubba needs to deposit $6,000.
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Nohemi
16 days 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
21 days ago
$15,000? Yikes, Bubba's gonna need a second job to cover that one.
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Aron
26 days 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
1 month ago
Regulation T, huh? Sounds like a fancy way of saying "Bubba, you gotta cough up some more cash."
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Jade
1 month ago
Hmm, looks like Bubba needs to dig deeper into his pockets. $9,000 should do the trick.
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Princess
1 month 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
2 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
2 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
2 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
2 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
2 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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Gracie
2 months ago
Regulation T is indeed 50%.
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Junita
3 months ago
I think the total cost for the new shares is $15,000, but I'm confused about how that affects the margin requirement.
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Minna
3 months ago
Wait, how does that add up? Seems off.
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Stephaine
3 months ago
Hmm, this looks tricky. I'm not sure I fully understand how Regulation T and the margin requirements factor in here.
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Blossom
3 months ago
I think I can work through this step-by-step, but I'll need to be careful to keep all the numbers straight.
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