An investor opening a new margin account places an initial purchase order for 200 shares o… — FINRA SIE (Securities Industry Essentials)

An investor opening a new margin account places an initial purchase order for $200$ shares of a stock priced at $\$18$ per share. Under Federal Reserve Regulation T and FINRA rules, what is the minimum dollar amount of equity the investor must deposit for this transaction?

Cevap: 2000 $

Cevap

The investor must deposit $2,000 to satisfy the FINRA minimum initial margin equity requirement.

To determine the required initial deposit, both Federal Reserve Regulation T and FINRA rules must be evaluated. Under Regulation T, the initial margin requirement is 50% of the

3,600 total purchase (

3,600 * 0.50 =

1,800). However, FINRA rules mandate a minimum initial deposit of

2,000 (or 100% of the purchase price if the total transaction value is less than

2,000). Since the total purchase value (

3,600) exceeds

2,000 but is less than

4,000, the FINRA minimum requirement of $2,000 takes precedence over the lower Regulation T amount.

Adım Adım Çözüm

Calculate total purchase value

$3,600

Multiply 200 shares by the market price of $18 per share.

Determine 50% Regulation T deposit requirement

$1,800

Federal Reserve Regulation T specifies a 50% initial margin requirement ($3,600 * 50%).

Apply FINRA minimum initial equity rule

$2,000

FINRA rules mandate a minimum initial equity deposit of

2,000 for margin account purchases between

2,000 and $4,000, which overrides the lower Regulation T calculation.

Anahtar Kavram

Interaction between Regulation T 50% Initial Margin and FINRA $2,000 Minimum Initial Equity Requirement

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