Under the present margin requirements, at least ____ percent of an investor's invested funds must be paid in cash.
A) 20
B) 30
C) 40
D) 50
E) none of the above

Question

Quizplus · Accepted Answer

Under the present margin requirements, at least 50 percent of an investor's invested funds must be paid in cash. This means that the investor can use up to 50 percent of the total investment as margin and borrow the rest from the broker. For example, if an investor wants to buy $10,000 worth of securities on margin, they would have to put up at least $5,000 of their own cash and borrow the remaining $5,000 from the broker.

Under the Present Margin Requirements, at Least ____ Percent of an Investor's