SIE practice questioneasyMargin Requirements (Reg T)
According to Regulation T, what is the initial margin requirement for most stocks?
- A50%✓ Correct answer
- B25%
- C100%
- D10%
Explanation
Why A — 50%
Regulation T requires a 50% initial margin for purchases of most securities. Maintenance margin is often 25%; 100% is for cash accounts; 10% is incorrect.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Trading & Settlement questions
- Which of the following order types guarantees execution but not price?
- Which order type would you use to protect an unrealized gain on a stock you own if the price drops below a certain…
- A buy stop order is typically used to:
- What happens if a stop order is triggered?
- When would a sell stop-limit order be activated?
- A customer places a sell limit order for 100 shares of ABC at $25. Which of the following accurately describes how this…
- Which type of order would an investor use to buy a security ONLY if it falls to a specific price or lower?
- A customer wants to buy 100 shares of XYZ stock as soon as possible at the current market price. Which type of order…