Margin Accounts
Under Regulation T, what is the minimum initial margin requirement for purchasing securities in a margin account?
Reg T initial margin = 50%. FINRA maintenance = 25% (long), 30% (short).
Complete Analysis & Legal Rationale
Regulation T requires a 50% initial margin for most securities purchases. This means the customer must deposit at least 50% of the purchase price. The 25% figure is the FINRA minimum maintenance margin for long positions.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Fails to satisfy established regulatory or procedural criteria.
Fails to satisfy established regulatory or procedural criteria.
Accurately reflects standard governing principles and verified criteria.
Fails to satisfy established regulatory or procedural criteria.
Official Standard: Primary source referenced in the authored explanation (Regulation T).