SIE practice questioneasyMargin Accounts & Regulation T
Regulation T requires customers to deposit what percentage of a purchase when using margin accounts for most stocks?
- A50%✓ Correct answer
- B25%
- C100%
- D10%
Explanation
Why A — 50%
Regulation T under the Securities Exchange Act of 1934 requires an initial deposit of 50% of the purchase price for stocks in a margin account. The 25% value relates to maintenance, not initial, requirements. 100% is for cash accounts.
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