Margin Trading from A to Z: A Complete Guide to Borrowing, Investing and Regulation by M. T. Curley

Preface     xi
About the Author     xv
Cash Accounts     1
Sale of Securities     3
Paying for Securities by the Sale of Other Securities     3
Delivery against Payment     4
Employee Stock Options     6
Chapter One Questions     7
Initial Federal Margin Requirements     9
Purchases     9
Sales     16
Meeting a Margin Call     17
Chapter Two Questions     19
Initial and Minimum Maintenance Requirements     21
Initial Requirements     21
House Requirements     23
NYSE Minimum Maintenance Requirements     23
Chapter Three Questions     29
The Special Memorandum Account     31
Customer's Account     35
Chapter Four Questions     42
Short Sales     45
Covering Short Sales     51
NYSE Minimum Maintenance Requirements     52
Sample Transactions     53
Short Sale versus the Box or Short against the Box     55
Prime Broker     59
Chapter Five Questions     62
Bonds     65
U.S. Government Securities     67
Zero-Coupon Government Obligations     67
Municipals     69
Nonconvertible Corporate Bonds     72
Chapter Six Questions     74
Miscellaneous Categories     77
When-Issued and When-Distributed Transactions     77
Customer's Accounts     78
Marks to the Market     80
When-Distributed Securities     80
Segregation of Customers' Securities     80
Review of Customers' Accounts     81
Interest Charges     83
Margin on New Issues     85
Day Trades     85
Requirements for a Pattern Day Trader     86
Time and Tick     87
Chapter Seven Questions     89
Options     91
Definitions     92
Additional Definitions Related to the Types of Options     93
Examples     95
Requirements for the Purchase and/or Sale of Options     100
Long-Term Equity Anticipation Securities     101
LEAPS     101
LEAPS Example     102
Bull Spread Call Debit     106
Bear Spread Call Credit     107
Bull Spread Put Credit     107
Bear Spread Put Debit     108
The American Style     108
The European Style     108
Other Types of Options     108
Index Options     108
Interest Rate Options     109
Additional Details Concerning Options     113
Chapter Eight Questions     114
Portfolio Margining     121
Margin Deficiencies     125
Chapter 9 Questions     126
Eligible/Hedged/Unhedged Positions     126
Account Set-up     126
Unlisted Derivatives     126
Liquidations     127
The Federal Reserve     129
Customer Margin Account and SMA Sheets     137
Answers to Chapter Questions     139
Final Examination Questions     151
Final Examination Answers     161
Glossary of Terms     169
Index     177