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Zorluk: ZorMargin Accounts and Borrowing Requirements

A customer establishing a new margin account with a FINRA member broker-dealer places an initial order to purchase 4040 shares of a marginable stock at $40\$40 per share. What is the minimum required initial equity deposit the customer must make to satisfy Federal Reserve Regulation T and FINRA margin requirements?

  1. A
    $800\$800
  2. $1,600\$1,600Cevap
  3. C
    $2,000\$2,000
  4. D
    $400\$400

Cevap

The minimum required initial cash deposit is $1,600\$1,600.
The total purchase value is 40×$40=$1,60040 \times \$40 = \$1,600. Standard Regulation T requires a 50%50\% deposit ($800\$800). However, FINRA Rule 4210 requires a minimum initial account equity of $2,000\$2,000, or 100%100\% of the purchase price if the purchase price is less than $2,000\$2,000. Since $1,600\$1,600 is less than $2,000\$2,000, the required deposit is 100%100\% of the trade value, which equals $1,600\$1,600.

Adım Adım Çözüm

1
Calculate the total purchase value of the transaction.
40 shares×$40 per share=$1,60040\text{ shares} \times \$40\text{ per share} = \$1,600.
Determining the total transaction amount is necessary to evaluate Regulation T and FINRA initial equity thresholds.
2
Calculate the Regulation T requirement.
50%×$1,600=$80050\% \times \$1,600 = \$800.
Federal Reserve Regulation T specifies a standard initial deposit requirement of 50%50\% of the trade value.
3
Apply FINRA Rule 4210 initial minimum equity requirements.
Since the total trade value of $1,600\$1,600 is less than FINRA's standard minimum requirement of $2,000\$2,000, the customer must deposit 100%100\% of the purchase price, which is $1,600\$1,600.
FINRA Rule 4210 mandates a minimum initial equity deposit of $2,000\$2,000 or 100%100\% of the purchase price, whichever is less.

Anahtar Kavram

FINRA Initial Margin Minimum Equity Exception for Small Long Purchases
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Konular

Margin Accounts and Borrowing Requirements