SIE practice questionmediumMargin Requirements
Under Regulation T, what is the initial margin requirement for purchasing stock in a margin account?
- A10%
- B25%
- C100%
- D50%✓ Correct answer
Explanation
Why D — 50%
Regulation T requires an initial margin deposit of 50% when buying securities on margin. 25% is the maintenance margin, 100% is for cash accounts, and 10% is not a regulatory threshold.
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.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Trading & Settlement questions
- Which of the following best defines 'best execution' under FINRA rules?
- A firm receives a client’s limit order at $52 and immediately buys 500 shares for its own account at $52 without…
- A flat yield curve often indicates:
- A client wants to buy only if a stock price rises above current levels, indicating a breakout. Which order is best?
- An investor places a not-held order. What discretion does the broker have?
- Which term describes a broker-dealer executing an order internally rather than routing to an exchange for execution?
- A customer enters a buy stop-limit order with a stop price of $30 and a limit of $30.10. The market moves from $29.90…
- What happens when a buy stop order is triggered?