Margin Accounts
An initial purchase of $3,000 of stock in a margin account requires a cash deposit of:
Initial margin = 50% OR $2,000, whichever is GREATER (but not more than purchase price).
Complete Analysis & Legal Rationale
Regulation T requires 50% initial margin, but FINRA also requires a minimum of $2,000 (or the full purchase price if less than $2,000). For a $3,000 purchase, 50% = $1,500, but the $2,000 minimum applies, so $2,000 is required.
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:
$750 is only 25% and below the $2,000 minimum.
$1,500 is 50% but below the $2,000 minimum.
Matches the verified teaching point in the explanation.
$3,000 (100%) would be a cash account, not margin.
Official Standard: Primary source referenced in the explanation (Regulation T). Verify before launch.