SIE (Securities Industry Essentials) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Ace your Securities Industry Essentials (SIE) Exam with Examzify! Our practice exam features flashcards, multiple-choice questions with detailed explanations, and insightful tips to ensure your success.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Under industry regulations, an initial purchase of $3,000 of common stock in a margin account requires a cash deposit of:

$1,000
$1,500
$2,000
$2,500

The correct answer is: $2,000

An initial purchase of $3,000 of common stock in a margin account requires a cash deposit of $2,000 because under industry regulations, the initial margin requirement for common stock is 50%. This means that you must have at least half of the total purchase price in cash in your account in order to make the purchase. Option A and B are lower than the required 50% margin, while option D is higher than the required amount. Therefore, option C is the correct answer.