Match each margin requirement or regulation on the left with its corresponding threshold o… — FINRA SIE (Securities Industry Essentials)

Match each margin requirement or regulation on the left with its corresponding threshold or rule on the right.

Federal Reserve Board (FRB) Regulation T initial margin requirement $50\%$ of the total purchase price
FINRA minimum initial equity requirement for long margin purchasesThe lesser of $\$2,000$ or $100\%$ of the total purchase price
FINRA minimum maintenance equity requirement for long margin positions $25\%$ of the current market value
FINRA minimum maintenance equity requirement for short margin positions $30\%$ of the current market value

Federal Reserve Board Regulation T initial margin matches

50\%

of the purchase price; FINRA initial long equity requirement matches the lesser of

\$2,000

100\%

of purchase price; FINRA long maintenance requirement matches

25\%

of current market value; FINRA short maintenance requirement matches

30\%

of current market value.

Regulation T mandates an initial deposit of

50\%

; FINRA requires a minimum initial long equity deposit equal to the lesser of

\$2,000

100\%

of the purchase price; ongoing maintenance for long accounts is

25\%

; and ongoing maintenance for short accounts is

30\%

Identify Federal Reserve Board credit extension regulations

Regulation T establishes the standard initial margin deposit requirement of

50\%

for marginable equity purchases.

The Federal Reserve Board sets initial margin limits under Regulation T.

Identify FINRA initial equity requirements for small or standard long purchases

FINRA enforces an absolute dollar floor requiring investors to deposit the lesser of

\$2,000

100\%

of the total purchase amount.

SRO rules enforce minimum equity protection on new margin accounts.

Compare long vs. short maintenance requirements under FINRA Rule 4210

Long positions require maintaining at least

25\%

equity, whereas short positions require maintaining at least

30\%

equity.

Short positions carry greater risk exposure due to unlimited upside potential, necessitating a higher minimum maintenance threshold.

Initial and Maintenance Margin Requirements under Regulation T and FINRA Rule 4210

Question