If a client purchases $200,000 of common stock in a margin account, how much must they deposit according to Regulation T?

According to Regulation T, when a client purchases securities on margin, they are typically required to deposit a certain percentage of the total purchase price. As of the most recent updates, the standard requirement under Regulation T is that a client must deposit 50% of the purchase price of the securities.

In this scenario, the client is purchasing $200,000 worth of common stock. To determine the minimum deposit required, you calculate 50% of $200,000, which equals $100,000. Therefore, the correct answer is the amount that must be deposited, which is $100,000. This aligns with the regulation's requirement for initial margin deposits in margin accounts.

Understanding this requirement is crucial for clients engaging in margin trading, as it helps them grasp the financial commitments involved and the potential risks of borrowing to invest.