Series 7 Exam Question 205: Answer and Explanation

Question: 205

Ayla K. has a short margin account with a market value of $30,000. What is the minimum maintenance for the account?

• A. $7,500
• B. $9,000
• C. $15,000
• D. $30,000

Correct Answer: B

Explanation:

B. The minimum maintenance (minimum amount of equity) required in a short margin account is 30 percent of the current market value.