Margin Accounts
A customer purchases $3,000 of stock on margin. How much must they deposit?
While 50% of $3,000 is only $1,500, the customer must deposit the greater of 50% OR the $2,000 FINRA minimum. Therefore, the required deposit is $2,000. The customer can borrow $1,000.
Complete Analysis & Legal Rationale
While 50% of $3,000 is only $1,500, the customer must deposit the greater of 50% OR the $2,000 FINRA minimum. Therefore, the required deposit is $2,000. The customer can borrow $1,000.
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: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.