SIE practice questioneasyMargin Requirements – Reg T
According to Regulation T, what is the minimum initial margin requirement for purchasing stock on margin?
- A50% of the purchase price✓ Correct answer
- B25% of the purchase price
- C10% of the purchase price
- D100% of the purchase price
Explanation
Why A — 50% of the purchase price
Regulation T requires customers to deposit at least 50% of the purchase price when buying securities on margin. 25% is the maintenance margin, 10% is not applicable, and 100% is cash account.
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