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Zorluk: OrtaMargin Accounts and Borrowing Requirements

An investor opens a new margin account and executes a first transaction by purchasing 40 shares of XYZ stock at $45 per share. Assuming there are no existing funds or securities in the account, how much cash must the investor deposit to meet the initial requirement under Federal Reserve Regulation T and FINRA rules?

$1,800Cevap
B
$900
C
$2,000
D
$450

Cevap

The investor must deposit $1,800, representing 100% of the total purchase price.

The total trade value is

1,800 (40 shares ×

45). Although Regulation T requires 50% (

900), FINRA rules dictate that for long margin purchases under

2,000, the investor must deposit 100% of the purchase price ($1,800).

Adım Adım Çözüm

1

Calculate total purchase value

1,800 total value (40 shares ×

45 per share)

Margin requirements are calculated based on total position value.

2

Compare Regulation T requirement with FINRA rules

Reg T 50% requirement is

900, but FINRA rule requires 100% deposit for purchases under

2,000

Federal Reserve Regulation T requires 50% margin, but SRO rules mandate a full 100% deposit when the total transaction amount is less than the standard $2,000 minimum.

3

Determine required deposit

Required cash deposit is $1,800

The customer must cover 100% of the purchase amount when total trade value is under $2,000.

Anahtar Kavram

FINRA Initial Margin Minimum Equity Exception

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Konular

Margin Accounts and Borrowing Requirements