Series 7 Exam Question 207: Answer and Explanation

Question: 207

Under federal law, stock CANNOT be tendered from which of the following accounts?

• A. Short margin accounts
• B. Margin accounts with no excess equity
• C. Cash accounts
• D. Long margin accounts

Correct Answer: A

Explanation:

A. Remember, you can't tender stock that is borrowed, and stock in a short account is borrowed stock.