Series 99: 1.2.3.3 Restricting Account Activity

1.2.3.3  Restricting Account Activity

Recall that a margin account is an investment account in which securities are bought on margin—that is, part of their cost is paid with borrowed money. The Federal Reserve Board’s Regulation T requires the customer to pay at least 50% of the purchase amount with her own (not borrowed) money.

Once securities are bought, they may rise or fall in value. Recall that all margin accounts are marked to the market daily. That means that securities in a margin acco