Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
What is the buying power in Bubba's account?
A) $3,000
B) $6,000
C) $11,000
D) $0
Correct Answer:
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