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Securities > Good Faith Margin Account

The following information is about Good Faith Margin Account.

Good Faith Margin Account Defined

Type of account allowed under Reg T for margin transactions in exempt securities, non-equity securities, money market mutual fund shares, or shares in a mutual fund that has at least 95% of its assets continuously invested in exempted securities. The initial good faith margin required for purchases is the "amount of margin which a creditor would require in exercising sound credit judgment." For short sales, the initial margin required is the current market value of the security plus the good faith margin.

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