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Business, 18.02.2020 05:01 rebeccacruzz2017

A customer's only account at a broker-dealer is an established margin account. The customer wishes to participate in the distribution of a new issue of common stock coming to market in the next few days. Which of the following is true regarding this situation? The customer must be told that

[A]he will be required to open a cash account in order to participate in the new issue.
[B]new issue purchases are not allowed in a margin account.
[C]he can purchase the new issue shares in his margin account but would be required to pay for the purchase in full since it is an IPO.[D]new issues require a margin deposit of 75%.

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