SIE practice questioneasyMargin Requirements – Regulation T
Under Regulation T, what is the initial margin requirement for most stock purchases?
- A25% of the purchase price
- B100% of the purchase price
- C50% of the purchase price✓ Correct answer
- D10% of the purchase price
Explanation
Why C — 50% of the purchase price
Regulation T requires investors to deposit 50% of the purchase price for marginable securities. 100% is required in cash accounts; 25% is the maintenance margin; 10% is not applicable.
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.
Related Trading & Settlement questions
- In a margin account, what is the minimum maintenance margin requirement for equity securities according to FINRA?
- A registered representative shares profits with a customer in a joint account without firm approval. What rule is…
- Which federal regulation sets the initial margin requirement for purchasing securities on margin?
- Settlement in a cash account requires: