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Zorluk: OrtaMargin Accounts and Borrowing Requirements

An investor opening a new margin account executes an initial transaction to purchase 40 shares of a marginable stock at $45 per share. According to Federal Reserve Board Regulation T and FINRA initial margin rules, how much cash must the investor deposit to fulfill the requirement?

$1,800Cevap
B
$900
C
$2,000
D
$3,600

Cevap

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

Under FINRA Rule 4210, the initial minimum equity required to open a margin account is

2,000 or 100% of the purchase price, whichever is less. Because 40 shares at

45 per share equals

1,800 total, the investor must deposit the full purchase amount of

1,800.

Adım Adım Çözüm

1

Calculate the total purchase value of the trade.

40 shares ×

45 per share =

1,800 total cost.

The total position value determines the baseline for Regulation T and FINRA initial margin rules.

2

Determine the Federal Reserve Board Regulation T requirement.

50% of

1,800 =

900.

Regulation T specifies a standard 50% deposit requirement for marginable equity purchases.

3

Apply FINRA Rule 4210 initial minimum equity requirements.

FINRA requires a minimum deposit of

2,000 or 100% of the purchase price, whichever is less. Since

1,800 is less than

2,000, the requirement is

1,800.

FINRA minimum equity rules override Regulation T when the transaction value is less than $2,000.

Anahtar Kavram

FINRA Minimum Initial Equity Requirement for Small Long Purchases

Tahmini Süre:1m 15s

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Konular

Margin Accounts and Borrowing Requirements