maintenance call chart, maintenance requirement long account, minimum maintenance chart, Reg T chart

FINRA maintenance requirement long account

·        Customers must keep 25% of market value in account

·        FINRA sets minimum maintenance requirements

·        Reg T only sets amount needed for initial purchase not balance that must be in account later

·        Broker/dealer firms require 5-10% above FINRA to protect themselves

·        Maintenance margin call (MMC) =Dr/75%

·        Minimum maintenance=MVx25%

·        SMA=Equity – (LMV x 50%)

·        Minimum Maintenance= LMV x 25%

Equity can decrease

·        Debit balance increases

·        Customer borrows $-use all/part SMA

·        Market value decreases, stock price decreases

An investor has a long margin account with a market value of $88,000 and a debit balance of $40,000. What is the FINRA minimum maintenance for the account at its present position?

·        $22,000

·        25% present market value

·        88,000x25%=22k

	Reg T Call	Minimum Maintenance	Maintenance Call
When maintenance call applies	when investors buy short/sell short	withdraw$ from long or short account,equity drop	long: bear, short:bull
Calculate long account	MVx50%	MVx25%	Dr/75%
Calculate short account	MVx50%	MVx30%	Cr/130%
minimum amount allowed in account	$2000-FINRA. Not The Fed's Reg T	Long: $2000 short:$2000 or $5 per share	N/A. need to deposit $