Series 28: Special Purpose Credit

Taken from our Series 28 Online Guide

We have an Audiobook for this text!

Special Purpose Credit

A creditor may also extend the following types of credit with good faith margin:

• Credit to finance the purchase or sale of securities for prompt delivery if the credit is to be repaid upon completion of the transaction
• Credit to finance securities in transit or surrendered for transfer if the credit is to be repaid upon completion of the transaction
• Credit to enable a broker-dealer to pay for securities if the credit is to be repaid on the same day it is extended
• Credit to an exempted borrower (see Exempted Borrowers section)
• Credit to a member of a national securities exchange or registered broker-dealer to finance its activities as a market maker or specialist
• Credit to a member of a national securities exchange or registered broker-dealer to finance its activities as an underwriter

+ Read More

More Series 28 Info

What are people saying?

Create an Account

Since you're reading about Series 28: Special Purpose Credit, you might also be interested in:

Series 14 - 8.5.3.2. UGMA and UTMA Accounts

Series 7 - 5.3.3.1. Debit Call Spread

Series 6 - Cumulative Preferred Stock

Series 53 - Contributors

Series 26 - Privacy Notice—Regulation S-P

Series 63 - Duty of Best Execution

Series 24 - SEC Rule 604 – Limit Order Display

Series 65 - Registration of Securities

Series 7 - 14.5.4. Direct Registration

Series 7 - 7.1.2.2. Equipment Leasing

Series 51 - Municipal Advisor Representative (Series 50)

Series 53 - Yield to Maturity

Series 7 - 3.6.13. Rule G-13—Published Municipal Securities Quotations Must Be Firm

Please Enable Javascript
to view this content!

Site Login

Forgot Password?

Create an Account

TESTIMONIALS

What are people saying?

I took this Series 28 today and passed on my first try! I think the practice exams helped a ton, though in general, I would say the actual test seemed (at least to me), more difficult than the practice exams. Either way, couldn't have done it without the Solomon Exam Prep.

Gayle Espinosa. Los Angeles, CA

Last August 2020 I passed the Series 28 on the first try using your materials. I just wanted to drop in and let you know I passed the Series 27 exam today!! I am so happy today as I took the test in Jan of this year and missed it by 3 points. I switched up my focus and really zoned in the most heavily weighted chapters. This is by far the hardest exam I have taken. Thank you Solomon for your excellent study materials. I'll be back when I pass the next one ;)

Nikita Brown, BMI. Atlanta, GA

I wanted to let you know I passed my Series 28 today!! Thanks for great prep materials. I have been working really long hours at my job and it was a challenge finding the time to study. The video lectures proved to be a big help. I’m glad that exam is over!!!

Nikita Brown, BMI. Atlanta, GA

Thanks! I am thrilled. I took the Series 7 three years ago and have been putting off the Series 63 after I failed the first time. I used your book and iPhone app. I am recommending your materials to everyone in my office that needs to take the 63 in the near future. Of course you can use my email as a testimonial. Everything that people have said on the testimonials is 100% correct. The way the materials are written makes it much less of a chore to read and comprehend. Thanks for the follow up email!

Julia Smith, RBC Wealth Management

3rd time is a charm and it took Solomon to do it. None of the other materials in my first two attempts were strong enough to enable me to reason my way to the correct answers. Solomon's angle on this material was closest to the actual test and was the reason I got there.

As an aside, the ongoing personal help was very surprising and commendable. Thank you, Solomon!

Jason Bowen, Southington, CT

I was very impressed with all elements of Solomon's Series 24 offerings. Solomon provided an incredibly organized system for me to utilize, which kept me "on point" and focused. I felt good confidence going into the test because of the structured system that Solomon developed. I would certainly recommend Solomon to anyone that is taking the Series 24.

William Bundy, Bundy Group. Charlotte, NC

Regulation T Credit Accounts
Type of Account	Characteristics
Margin Account	• Initial margin requirement is 50% equity for long equity securities and convertible debt • Initial margin is 150% for short sales of equity securities
Special Memorandum Account (SMA)	• Defines a customer’s buying power with a margin account • Customer can purchase two times amount in SMA
Cash Account	• Transactions must be paid in full within five business days of trade date • Freeriding violations occur in this kind of account • Covered calls and puts can be placed in thi