Series 7 UPDATED Exam Questions and CORRECT Answers
The minimum maintenance in a short account is - 30% of the market value or $5 per share (whichever is greater) for stocks trading above $5. For stocks trading below $5, the minimum maintenance is - $2.50 per share or 100% of market value (whichever is greater). Duration measures - a bond's price volatility by weighting the length of time it takes for a bond's cash flow to pay for itself If two bonds with differing coupon rates have identical maturities, the one with the lower coupon has the longer duration. The cash flow from an interest-bearing bond makes its duration shorter than its maturity. Bonds with longer duration carry greater price volatility. Duration is expressed in years (time) rather than in percentage.
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- 29 de mayo de 2024
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