Investors who take positions in securities are required to satisfy initial and maintenance margin requirements.

Question

Quizplus · Accepted Answer

Initial margin is the percentage of the purchase price that an investor must pay for with their own cash or marginable securities when buying on margin, while maintenance margin is the minimum amount of equity that must be maintained in a margin account after a purchase is made, to protect brokers against losses.

Investors Who Take Positions in Securities Are Required to Satisfy