Accounts & CustomersQuestion 61 of 125
FINRA's minimum maintenance margin requirement for a long stock position is:
a.50% of the current market value
b.10% of the current market value
c.25% of the current market value
d.5% of the current market value
Explanation
FINRA rules require that equity in a long margin account be maintained at no less than 25% of the current market value of the securities. If the account's equity falls below this maintenance level, the firm issues a maintenance (house or FINRA) margin call for additional funds.
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- To exercise discretion in a customer's account, a registered representative must first obtain:
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