Series 7 Exam Question 245: Answer and Explanation

Question: 245

What is the minimum amount of assets your client must have in order to establish a prime brokerage account?

• A. $100,000
• B. $500,000
• C. $1,000,000
• D. $5,000,000

Correct Answer: B

Explanation:

B. Your client must have at least $500,000 in assets available for investments to establish a prime brokerage account. Although, if the account is established through an investment adviser, the minimum requirement is only $100,000. Prime brokerage firms consolidate information from all brokerage accounts the client has to provide one statement.