SIE - Securities Industry Essentials Exam

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Your client has a margin account. She just purchased $10,000 of common stock. What is the minimum amount of cash that must she deposit?

$20,000
A
$10,000
B
$5,000
C
$2,500
D

Explanations

Under Reg T, firms can lend a customer up to 50% of the total purchase price of a margin security for new, or initial, purchases.