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Zorluk: ZorMargin Accounts and Borrowing Requirements

An investor opens a new margin account and purchases 8,0008,000 of marginable common stock. If the investor chooses to satisfy the Regulation T initial margin call by depositing fully paid, marginable securities rather than cash, what is the minimum market value of securities that must be deposited?

  1. A
    4,0004,000
  2. 8,0008,000Cevap
  3. C
    2,0002,000
  4. D
    16,00016,000

Cevap

8,0008,000 in market value of fully paid securities
Under Federal Reserve Regulation T, the initial margin requirement for an equity purchase is 50%. For an 8,0008,000 purchase, the required cash deposit is 4,0004,000. When an investor deposits fully paid marginable securities instead of cash, the securities have a Regulation T loan value of 50% of their market value. Consequently, it requires 2.002.00 worth of marginable securities to satisfy every 1.001.00 of a cash margin call. To satisfy a 4,0004,000 cash call, the investor must deposit securities with a market value of 8,0008,000 (4,000/0.504,000 / 0.50).

Adım Adım Çözüm

1
Calculate the Regulation T cash requirement.
50% of the 8,0008,000 purchase price equals a required cash deposit of 4,0004,000.
Regulation T specifies a 50% initial margin requirement for equity purchases.
2
Determine the loan value of fully paid marginable securities.
Fully paid marginable stock has a 50% loan value under Regulation T.
Securities deposited as collateral are credited at their loan value, which is 50% of market value.
3
Calculate the total market value of securities required.
Dividing the 4,0004,000 cash call by 50% yields 8,0008,000 in market value of securities.
It takes 2.002.00 of fully paid marginable securities to satisfy 1.001.00 of a Regulation T cash margin call.

Anahtar Kavram

Satisfying Regulation T margin calls with fully paid securities
Tahmini Süre:1m 30s
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Konular

Margin Accounts and Borrowing Requirements