Since 1974,the current initial margin requirement on stock is:
A)30 percent.
B)40 percent.
C)50 percent.
D)60 percent.

Question

Quizplus · Accepted Answer

The Securities Exchange Act of 1934 grants the Federal Reserve the authority to set initial margin requirements. In 1974, the Federal Reserve established a uniform initial margin requirement of 50 percent for securities purchases. This means that investors must pay at least 50 percent of the purchase price in cash or securities, and can borrow the remaining 50 percent from their broker. Therefore, the correct answer is C) 50 percent.

Since 1974,the Current Initial Margin Requirement on Stock Is