Margin Accounts
A customer wants to purchase $8,000 of marginable stock in their margin account. What is the minimum deposit required under Regulation T?
Regulation T requires a 50% initial margin, so 50% of $8,000 = $4,000. Since this exceeds the $2,000 FINRA minimum, the customer must deposit $4,000. The remaining $4,000 can be borrowed from the broker.
Complete Analysis & Legal Rationale
Regulation T requires a 50% initial margin, so 50% of $8,000 = $4,000. Since this exceeds the $2,000 FINRA minimum, the customer must deposit $4,000. The remaining $4,000 can be borrowed from the broker.
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:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Primary source referenced in the explanation (Regulation T). Verify current text before launch.