Question

Which of the following statements are TRUE regarding the sale of a long position in a restricted long margin account?

I. 50% of the proceeds of the sale are credited to SMA
II. 100% of the proceeds of the sale are credited to SMA
III. There is a 0% retention requirement of the sale for a restricted account
IV. There is a 50% retention requirement of the sale for a restricted account

a. I and III
b. I and IV
c. II and III
d. II and IV

Answer 1

b

Step-by-step explanation:

50% of the proceeds of the sale are credited to SMA

and

There is a 50% retention requirement of the sale for a restricted account