Series 28: Maintenance Margin

Taken from our Series 28 Online Guide

Maintenance Margin

The equity that FINRA generally requires a broker-dealer to maintain in a margin account for all long margin securities is 25% of their current market value. For the long list of exceptions, see the following sections.

For short margin securities, the maintenance margin that must generally be maintained is the greater of the values in the table that follows. We will note the exceptions momentarily.

Minimum Maintenance Margin for Short Margin Securities

Type of Security

Maintenance Margin Is the Greater of:

Stocks

  • Less than $5/share

$2.50/share

Market value of stock

  • $5/share and above

$5.00/share

30% market value of stock

Bonds

5% of the principal

30% market value of

Since you're reading about Series 28: Maintenance Margin, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 28
Please Enable Javascript
to view this content!