The Securities Exchange Act of 1934 set a minimum percentage of the purchase price that must come from the investor's own fund to avoid

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The minimum percentage of the purchase price that must come from the investor's own fund, known as the margin requirement, was set by the Securities Exchange Act of 1934 to avoid excessive margin buying, which can lead to increased market volatility and systemic risks. This requirement helps to ensure that investors have a sufficient stake in the game and are less likely to default on their obligations.

The Securities Exchange Act of 1934 Set a Minimum Percentage