Course Code: 705

Duration: 2 days

Level: Basic

Fee: $1395.00

CPE Credits: 14

Prerequisite: No Prerequisite Required.

This two-day seminar presents in a concentrated format the essential information about margin: functions, responsibilities and daily duties of margin department staff, and the impact of margin activities on other departments. It is intended primarily for members of the Margin Department and those who interact with this department, including Compliance EDP, internal audit, and other operations personnel. Conducted in a workshop format, to encourage interaction, the program emphasizes what typically goes on in the Margin department, why and how. Exercises are included to provide opportunities to try out realistic situations.

Role of the Margin Department and Its Interrelationships with Other Areas

Differences between Cash, Margin, and SMA Accounts

Terms Commonly Used by Margin Professionals

Purposes of Margin Trading

NYSE Initial Margin and Maintenance Requirements

Margin Account Maintenance,with Both Long and Short Positions

Margin Bond Accounts: How They Differ From Equity Accounts

The Significance and Mechanics of Margin Calls

Basics of Shorting Securities in Margin Accounts

After completing this seminar, participants will be able to:

• Post a margin account
• Compute buying power
• Understand the workings of a cash account  
• See what role the Federal Reserve plays regarding credit on securities
• Post to an SMA
• Understand how a short sale is processed
• Understand the mechanics of a stock loan
• How a short sale is posted