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.
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