SIE practice questioneasyMargin Accounts - Regulation T
What is the minimum initial margin requirement for purchasing stock on margin, as set by Regulation T?
- A100% of the purchase price
- B50% of the purchase price✓ Correct answer
- C25% of the purchase price
- D10% of the purchase price
Explanation
Why B — 50% of the purchase price
Regulation T, set by the Federal Reserve, requires a customer to deposit at least 50% of the purchase price when buying stock on margin. The other listed percentages are not the Reg T initial margin requirement.
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