SIE practice questioneasyMargin Requirements
Under Regulation T, what is the initial margin requirement for purchasing stock on margin?
- A25%
- B50%✓ Correct answer
- C75%
- D100%
Explanation
Why B — 50%
Regulation T requires an initial margin deposit of 50% of the purchase price for most securities. 25% is typical for maintenance margin, 100% is for cash purchases, and 75% is not a standard requirement.
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