SIE practice questioneasyMargin Requirements - Regulation T
Under Regulation T, what is the initial margin requirement for most stocks?
- A50% of the purchase price✓ Correct answer
- B75% of the purchase price
- C25% of the purchase price
- D100% of the purchase price
Explanation
Why A — 50% of the purchase price
Regulation T requires an initial margin deposit of 50%. Maintenance is generally 25%, while full payment (100%) is only for cash accounts.
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