The relative amount of personal funds,or initial equity,an investor has to "put up" when purchasing stocks on margin is called the initial margin requirement.

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This statement accurately defines the initial margin requirement. The initial margin requirement is the minimum amount of equity that an investor must have in order to buy securities on margin, which is the practice of borrowing money from a broker to purchase stocks, bonds, or other securities. The initial margin requirement is expressed as a percentage of the total investment, and it varies depending on the type of security being purchased, the amount of leverage being used, and other factors.

The Relative Amount of Personal Funds,or Initial Equity,an Investor Has