Series 7 practice questionmediumMargin Accounts 1
A customer buys $4,000 of stock in a new margin account. Under Regulation T, the initial deposit requirement is:
- A$1,000
- B$1,200
- C$4,000
- D$2,000✓ Correct answer
Explanation
Why D — $2,000
Regulation T requires 50% initial margin for most equity securities purchased in a margin account. A $4,000 purchase therefore requires a $2,000 deposit.
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