Question

Under Federal law, stock can be tendered from which of the following accounts?

I. Restricted margin account
II. Short margin account
III. Long margin account
IV. Cash account
A. IV only
B. I and III only
C. I, III, IV
D. I, II, III, IV

Answer 1

C. I, III, IV

Step-by-step explanation:

Given that stock in a short account is obtained; that is, it is a borrowed stock and in a situation whereby the short tender rule, is applicable, the shareholders can only tender stock to the level of their stock's net long position.

Hence, Under Federal law, stock can be tendered from the following accounts:

I. Restricted margin account

II. Long margin account

III. Cash accountaccount

Hence, in this situation the correct answer is option C