Since 1974,the initial margin requirement for stocks has been:
A)30 percent.
B)40 percent.
C)50 percent.
D)60 percent.

Question

Quizplus · Accepted Answer

The initial margin requirement for stocks has been 50 percent since 1974. This means that an investor must deposit at least 50 percent of the purchase price of a stock before buying it on margin. The remaining 50 percent may be borrowed from the broker. This requirement is set by the Federal Reserve Board and is designed to mitigate the risk of investors defaulting on their margin loans.

Since 1974,the Initial Margin Requirement for Stocks Has Been