Securities must be kept in street name if a margin account is used.

Name: Securities must be kept in street name if a margin account is used.
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Question

Quizplus · Accepted Answer

This is true. When an investor opens a margin account with a broker, they must keep their securities in "street name," which means the securities are held in the broker's name, rather than the investor's. This allows the broker to use the securities as collateral for the margin loan.

Securities Must Be Kept in Street Name If a Margin