Margin Accounts
Regulation T requires what percentage for the initial purchase of marginable securities?
Initial margin = 50% (Reg T). Maintenance = 25% (FINRA). House requirements may be higher.
Complete Analysis & Legal Rationale
Regulation T, set by the Federal Reserve, requires an initial margin of 50% for the purchase of marginable securities. The customer must deposit at least half the purchase price.
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:
25% is the maintenance margin requirement, not initial.
Matches the verified teaching point in the explanation.
75% is higher than required for initial margin.
100% would be a cash purchase, not margin.
Official Standard: Primary source referenced in the explanation (Regulation T). Verify before launch.