Synopses & Reviews
Trading on margin may be considered a high-risk strategy, but purchasing securities in this manner is nothing more than purchasing securities on credit. And if properly performed, this investment approach can yield significant profits.
While there's risk in any leveraged investment, with knowledge of the product, diversification, and constant monitoring, this risk can be greatly reduced. Certainly, there is nothing new in these concepts, and nobody is more familiar with them than author Michael Curley. With over fifty years of experience in the field of financeincluding fifteen years in the banking industry and fifteen years in the brokerage industryCurley knows what it takes to make it as a successful investor, and now, with Margin Trading from A to Z, he'll show you how.
Margin Trading from A to Z offers a step-by-step explanation of the mechanics of the margin account. Filled with in-depth insights and expert advice, this book uses a hands-on approachto show how a Regulation T margin call is arrived at; how it may be answered; and what an account looks like once a call is issued and after the call is met.
Throughout these pages, you'll quickly become familiar with the essential elements of margin trading and learn how to operate within this dynamic environment. Some of the issues covered by this detailed guide include:
Initial and minimum maintenance requirements
The intricacies of the Special Memorandum Account (SMA)
Margin trading as it relates to short selling, bonds, and options
The opportunities that a Portfolio Margining methodology presents
And much more
Each information-packed chapter also contains challenging quizzes to test your knowledge of each area before you move on. In addition to this, there's a comprehensive fifty-question examalong with detailed answerslocated in the appendix, which presents questions related to the entire book.
There are substantial benefits to trading on margin, but if you're unprepared, you could end up making some very costly mistakes. Written with the serious investor in mind, Margin Trading from A to Z will help you build a solid understanding of this discipline and allow you to take advantage of all it has to offer.
Synopsis
Investing on Margin provides a step-by-step dissection of the mechanics of the Margin Account.
This book uses a hands-on approach to show in understandable detail how a Regulation T Margin Call is arrived at, how it may be answered and the result of what the account looks like before the call is issued, after it is issued and after it is met.
Other items that are covered in the same aforementioned detail are Minimum Maintenance Requirements, Short Selling, Bonds, Corporate, Convertible, Municipal, U.S. Treasury Obligations and the workings of the Special Memorandum Account (SMA).
At the end of each chapter, there is a ten question quiz (along with detailed answers) to test yourself on each area before moving on. At the end of the book there are an additional 25 questions and answers covering the entire book.
Synopsis
Praise for Margin Trading from A to Z
"A comprehensive and indispensable look at margin and margin trading. From the fundamentals of 'Regulation T' to the complexity of 'Shorting Against the Box,'Margin Trading from A to Z is a must-read for anyone working in the investment world or investors ready to take the next step into margin trading."
Patrick J. Flynn, CPA, Registered Representative, Managing Principal, Flynn, Abell & Associates, LLC
"Known in the industry as 'Margin Mike,' Mike Curley has been the experts' expert on margin accounting and regulation over the past four decades. This book takes the mystery out of margin computations and is a must-read for individual investors and professionals alike who wish to expand their understanding and knowledge of margin accounting and regulation."
Ben Lubin, President, Securities Industry Management Corp., and former NASD governor and chair of the Capital & Margin Compliance
"Mike's knowledge of margin rules is outstanding. As a recruiter on Wall Street, I use his book as a reference for my candidates who need to brush up on current rules."
Daniel Collins, founder and CEO, Daniel Collins and Company
Synopsis
Margin Trading from A to Z offers a step-by-step explanation of the mechanics of the margin account. Filled with in-depth insights and expert advice, this book uses a hands-on approach to show how a Regulation T Margin Call is arrived at; how it may be answered; and how an account looks once a call is issued and after the call is met. Other items covered by this detailed guide include minimum maintenance requirements, short selling, memorandum accounts, options, hedge funds, and portfolio margining. The book includes quiz questions and a comprehensive exam.
About the Author
Michael T. Curley has fifty years of experience in the field of finance, including fifteen years in the banking industry and fifteen years in the brokerage industry. He has attained experience as a manager of operations at Citibank, as a vice president of operations at both State Street and Hartford Trust Company of New York, and from work in the Division of Compliance, Finance, and Margin at the New York Stock Exchange. Since 1987, Curley has been a full-time financial trainer and consultant. He currently teaches at the New York Institute of Finance and at the Securities Operations Forum.
Table of Contents
Preface.
About the Author.
Chapter 1. Cash Accounts.
Sale of Securities.
Paying for Securities by the Sale of Other Securities.
Delivery against Payment.
Employee Stock Options.
Chapter One Questions.
Chapter 2. Initial Federal Margin Requirements.
Purchases.
Sales.
Meeting a Margin Call.
Chapter Two Questions.
Chapter 3. Initial and Minimum Maintenance Requirements.
Initial Requirements.
House Requirements.
NYSE Minimum Maintenance Requirements.
Chapter Three Questions.
Chapter 4. The Special Memorandum Accounts.
Customer’s Account.
Chapter Four Questions.
Chapter 5. Short Sales.
Covering Short Sales.
NYSE Minimum Maintenance Requirements.
Sample Transactions.
Short Sale versus the Box or Short against the Box.
Prime Broker.
Chapter Five Questions.
Chapter 6. Bonds.
U.S. Government Securities.
Zero-coupon Government Obligations.
Municipals.
Nonconvertible Corporate Bonds.
Chapter Six Questions.
Chapter 7. Miscellaneous Categories.
When-Issued and When-Distributed Transactions.
Segregation of Customer’s Securities.
Review of Customers’ Accounts.
Interest charges.
Margin of New Issues.
Day trades.
Chapter Seven Questions.
Chapter 8. Options.
Definition.
Additional Definitions Related to the Type of Options.
Examples.
Requirements for the Purchase and/or Sale of Options.
Long-Term Equity Anticipation Securities.
Other Types of Options.
Additional Details Concerning Options.
Chapter Eight Questions.
Chapter 9. Portfolio Margining.
Margin Deficiencies.
Chapter 9 Questions.
Appendix A. The Federal Reserve.
Appendix B. Customer Margin Account and SMA Sheets.
Appendix C. Answers to Chapter Questions.
Appendix D. Final Examination Questions.
Appendix E. Final Examination Answers.
Glossary of Terms.
Index.