Series 7 practice questionmediumMargin Accounts — Regulation T
Under Regulation T, a margin call must be met within how many business days?
- A1 business day
- B2 business days
- C5 business days✓ Correct answer
- D10 business days
Explanation
Why C — 5 business days
Under Regulation T, a federal margin call (also called a Fed call or initial margin call) must be met within 5 business days (T+5) from the trade date. If the investor does not meet the call, the broker-dealer may liquidate securities in the account. Maintenance margin calls from the broker-dealer may have shorter deadlines, sometimes requiring same-day or next-day deposits.
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