SIE practice questionmediumMaintenance Margin
FINRA's minimum maintenance margin requirement for long equity positions is:
- A30% of the original purchase price
- B10% of the current market value
- C50% of the current market value
- D25% of the current market value✓ Correct answer
Explanation
Why D — 25% of the current market value
FINRA Rule 4210 sets the minimum maintenance margin at 25% of the current market value for long equity positions. If the equity in the account falls below this level, the investor will receive a margin call (maintenance call) and must deposit additional funds or securities. Many broker-dealers set their own 'house maintenance' requirements higher than the 25% FINRA minimum, often at 30-35%.
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