Series 7 Exam Question 158: Answer and Explanation

Question: 158

What is the minimum amount of assets an investor must have to establish a prime brokerage account?

  • A. $100,000
  • B. $500,000
  • C. $1,000,000
  • D. $10,000,000

Correct Answer: B

Explanation:

B. A client must have at least $500,000 in assets available for investments to establish a prime brokerage account. However, if the account is established through an investment adviser, the requirement reduces to $100,000. Prime brokerage firms consolidate information from all brokerage accounts to provide one account statement.

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