Regulators test specific thresholds constantly. Every number here has appeared on real exams.
Margin & Accounts
| Rule |
Number |
| Reg T initial margin requirement |
50% of purchase price |
| NYSE/FINRA minimum maintenance margin (long) |
25% |
| NYSE/FINRA minimum maintenance margin (short) |
30% |
| Pattern day trader minimum equity |
$25,000 |
| Pattern day trader definition |
4+ day trades in 5 business days (and day trades >6% of total trades) |
| Minimum to open a margin account |
$2,000 |
| Day trading buying power |
4x maintenance margin excess |
SIPC & FDIC
| Coverage |
Limit |
| SIPC total per customer |
$500,000 |
| SIPC cash sublimit |
$250,000 |
| FDIC per depositor per bank |
$250,000 |
Options
| Rule |
Detail |
| Standard contract size |
100 shares |
| Expiration (traditional) |
3rd Friday of expiration month |
| Exercise deadline (equity options) |
5:30 PM ET on expiration day |
| OCC assignment notice cutoff |
4:00 PM ET |
| Long-term options (LEAPS) max expiration |
up to 39 months |
Wash Sale Rule
| Item |
Rule |
| Wash sale window |
30 days before or after the sale |
| Effect |
Disallows capital loss deduction |
Anti-Money Laundering (AML)
| Report |
Threshold |
Deadline |
| Currency Transaction Report (CTR) |
$10,000+ cash |
15 days after transaction |
| Suspicious Activity Report (SAR) |
$5,000+ suspicious |
30 days after detection |
| SAR confidentiality |
Cannot disclose to the subject |
— |
Gift & Gratuity Rules
| Rule |
Limit |
| FINRA gift limit |
$100/year per recipient |
| Non-cash compensation (sales contests, etc.) |
Must be based on total production, not one product |
Holding Periods & Tax
| Item |
Period |
| Short-term capital gain |
Held ≤ 1 year |
| Long-term capital gain |
Held > 1 year |
| Qualified dividend holding period |
61 days around ex-dividend date (30 before + 30 after) |
| Wash sale disallowance window |
61 days total (30 before + day of + 30 after) |
Retirement Accounts
| Account |
2024 Contribution Limit |
Catch-up (50+) |
| IRA (Traditional / Roth) |
$7,000 |
+$1,000 |
| 401(k) / 403(b) |
$23,000 |
+$7,500 |
| SIMPLE IRA |
$16,000 |
+$3,500 |
| SEP IRA |
Lesser of $69,000 or 25% of compensation |
— |
| Rule |
Age |
| Required Minimum Distributions (RMDs) begin |
Age 73 (SECURE 2.0) |
| Penalty-free withdrawals |
Age 59½ |
| Early withdrawal penalty |
10% |
| Roth IRA 5-year rule |
Must hold account 5 years for tax-free earnings |
Securities Registration & Exemptions
| Item |
Detail |
| Reg D (private placement) accredited investor income |
$200,000 individual / $300,000 joint (last 2 years + current) |
| Reg D accredited investor net worth |
$1,000,000 (excluding primary residence) |
| Rule 144 holding period (restricted stock, non-affiliate) |
6 months |
| Rule 144 holding period (affiliate) |
6 months + volume limits |
| Rule 144A (resale to QIBs) |
Qualified Institutional Buyer owns $100M+ securities |
| Reg A+ Tier 1 offering limit |
$20 million in 12 months |
| Reg A+ Tier 2 offering limit |
$75 million in 12 months |
| Reg CF (crowdfunding) limit |
$5 million in 12 months |
Bonds & Fixed Income
| Concept |
Number |
| Standard bond par value |
$1,000 |
| T-Bill discount (sold at discount, redeemed at par) |
— |
| Treasury settlement |
T+1 |
| Corporate/municipal bond settlement |
T+2 |
| Equity settlement |
T+1 (since May 2024) |
| Accrued interest: corporate bonds |
30/360 day count |
| Accrued interest: munis & gov |
Actual/actual |
Suitability & KYC
| Rule |
Detail |
| FINRA Rule 4512 |
Customer account records updated every 3 years (for non-institutional) |
| Pattern day trader margin call cure period |
5 business days |
| Regulation BI (Best Interest) — applicable to |
Retail customers (natural persons) |
| Fiduciary standard applies to |
Investment Advisers (Series 66) |
Registration & Licensing
| Item |
Detail |
| Form U4 amendment deadline |
30 days for most changes |
| Form U4 amendment (criminal charges) |
10 days |
| FINRA membership application |
180 days to complete after filing |
| Statutory disqualification lookback |
10 years for felonies; 10 years for certain misdemeanors |
| Item |
Detail |
| Investment Adviser AUM threshold (federal vs state) |
$110 million AUM → must register with SEC; $100M may register |
| IA registration renewal |
Annual — December 31 |
| Agent registration renewal |
Annual — December 31 |
| Surety bond (IA) |
Required if IA has custody or discretion (amount varies by state) |
| Civil liability statute of limitations |
3 years from sale or 2 years from discovery (whichever is sooner) |
| Criminal penalties (USA) |
Up to 3 years prison and/or $5,000 fine (state level) |
| De minimis exemption (IA) |
IA with ≤5 clients in state in 12 months, no office in state |
| De minimis exemption (broker-dealer) |
BD with ≤3 transactions with state residents in 12 months |
