Series 24 Exam Study Guide 2022 + Test Bank by The Securities Institute of America

Author:The Securities Institute of America [The Securities Institute of America]
Language: eng
Format: epub
ISBN: 9781937841478
Google: x5LuzgEACAAJ
Publisher: Securities Institute
Published: 2022-02-04T23:24:27.598284+00:00

Investors who purchase securities on margin are charged interest monthly on the amount of the loan. An investor, in theory, may hold the securities on margin indefinitely and will be required to repay the principal amount of the loan upon the sale of the securities. Investors purchasing securities on margin must hypothecate or pledge the securities they purchased as collateral for the loan. All securities purchased on margin will be held in the name of the broker dealer, or street name. Holding the securities in the name of the broker dealer will allow the firm to liquidate the securities to protect the loan if the securities fall too far in value. Regulation T also establishes which securities may be purchased on margin. Marginable securities include:

All exchange-listed stocks and bonds.

All Nasdaq Global Market stocks.

All securities on the Federal Reserve Board’s approved list.

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