Series 27

  1. What Does REG U Govern
    Extension of Credit to Lenders other than Broker Dealers
  2. What does REGT Govern
    Etension of Credit to Broker Dealers
  3. What Does REG X Govern
    Extension of Credit to those who borrow to buy Securities
  4. Who Is responsible for the Rules Established By the Federal Reserve Board?
    The SEC
  5. If a deposit of the required amount in a Margin Purchase is not deposited in how many days after settlement, The BD is required to Sell out the position and restrict the account for 90 Days?
    2 days after settlement
  6. In a Freeriding Situation, Under what amount would the BD not be under an obligation to collect funds?
  7. In a DVP/RVP account how many days does an account have to receive/deliver before an extension is needed
    35 Days
  8. When opening a MArgin account 4 Things need to be disclosed to a customer, what are they?
    • 1.Conditions under which interst would be charged
    • 2.Interest Rate
    • 3.Method Of Computing Interest
    • 4.Method of determining the debot balance on which interst will be charged
  9. In a Margin account a statement must be sent at least?
  10. SEC rule 15c3-3 permits Broker Dealers to use stock with a value of what percent of the customers debit balance as collateral for a bank loan
  11. In order for a broker Dealer to lend Stock to another Broker Dealer it must sign an agreement that is not part of the margin agreement called?
    A loan consent agreement
  12. If a BD has Pledged its own securities as collateral for a loan and subsequently sells the stock to a customer. It must take the securities and place it in a segregated account in what time frame?
    Within 30 Minutes after the opening of banking hours on the business day following settlement date of the trade.
  13. When A BD hypothecates stock to a Bank... what must it do as far as notice goes
    It must notify the bank in writing that the stock belongs to customers and cannot be re hypothecated
  14. At The bank.... Can the Bank use the firms securities as additional collateral against a loan securitized by customer securities? Can the BAnk Use customer securities to collateralize a loan made to the firm ?
    The Firms securities may be used to collateralize a loan already collateralized by customer securities but may not use Customer securities to collateralize a loan alreadty made collateralized by the firms securities.
  15. If a customer sells stock in a restricted account, what percent of the proceeds may be withdrawn?
  16. To Determine the point to which the MArket Value would have to decline before a long account is at the 25% minimum equity level.
    multiply the debit balance by 1.333333
  17. In a margin account...With a Purchase for a value under $2,000 how much of a deposit is requred? With a prchase of $3,000?
    • Under 2,000 100% is requred
    • A $3,000 purchase would be $2,000
Card Set
Series 27
Series 27