May 19th, 2015
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Notification of the need to bring the equity of an account whose margin is below the maintenance margin level to have enough margined holdings sold to reach this standard.

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CHAPTER 2Markets andTransactionsContinuationMargin RequirementsThe minimum amount of Equity thatmust be a margin investors ownfunds.Two types of margin requirementsInitial MarginMaintenance MarginInitial MarginThe minimum amount of equity thatmust be provided by the investor atthe time of purchase.Restricted Accounta margin accounts whose equity isless thatthe initial marginrequirement.Initial Margin Requirements forVarious types of securitiesSecurityMinimum Initial Margin(Equity) RequiredListed common and preferredstock50%OTC stock traded on NasdaqNational Market50%Convertible Bonds50%Corporate Bonds30%U.S government bills, notes, andbonds10% of principalU.S government agencies24% of principalOptionsOption premium plus 20% ofmarket value of underlying stockFutures2% to 10% of the value of thecontractMaintenance MarginThe absolute minimum amount ofmargin (equity) that an investor mustmaintain in the margin account at alltimes.Margin CallNotification of the need to bring theequity of an account whose margin isbelow the maintenance margin levelto have enough margined holdingssold to reach this standard.The Basic Margin FormulaMargin Value of securities Debitbalance=Value of securitiesDebit balanceThe amount of money beingborrowed in a margin loan.ExampleAssume that you want to purchase100 share of stock at $40 per shareat a time when the initial marginrequiremen

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