Accounts & CustomersQuestion 60 of 125
A customer buys $20,000 of marginable stock in a margin account. Under Regulation T at 50%, how much must the customer deposit?
a.$5,000
b.$10,000
c.$20,000
d.$2,000
Explanation
The Regulation T initial requirement of 50% applies to the $20,000 purchase, so the customer must deposit $10,000. The broker-dealer may lend the remaining $10,000, which becomes the debit balance in the margin account.
Law Reference: Securities Exchange Act of 1934Practice all 125 questions free — no signup required.
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