SIE Exam Question 98: Answer and Explanation

Question: 98

Under Regulation T, what is the maximum amount of the total purchase price of a stock for new purchases that a firm can lend a customer?

• A. 25 percent
• B. 50 percent
• C. 75 percent
• D. 100 percent

Correct Answer: B

Explanation:

Under Regulation T, the maximum amount of the total purchase price of a stock for new purchases that a firm can lend a customer is 50 percent.