Accounts & CustomersQuestion 59 of 125
Under Regulation T, the initial margin requirement for a purchase of marginable common stock is currently:
a.50% of the purchase price
b.25% of the purchase price
c.100% of the purchase price
d.10% of the purchase price
Explanation
Regulation T, set by the Federal Reserve Board under the Securities Exchange Act of 1934, currently requires an initial margin deposit of 50% of the purchase price for marginable equity securities. The remaining amount may be borrowed from the broker-dealer through the margin account.
Law Reference: Securities Exchange Act of 1934Practice all 125 questions free — no signup required.
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