SIE practice questioneasyMargin Requirements - Reg T
Under Regulation T, what is the initial margin requirement for purchasing securities?
- A80% of the purchase price must be deposited
- B20% of the purchase price must be deposited
- C50% of the purchase price must be deposited✓ Correct answer
- D100% of the purchase price must be deposited
Explanation
Why C — 50% of the purchase price must be deposited
Reg T generally requires 50% of the purchase price as the minimum initial deposit. 20% and 80% are incorrect, and 100% applies to cash accounts, not margin accounts.
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