Regulation T
(Margin)
Regulation T - governs the amount of credit that can be advanced by broker / dealers to investors for the purchase of securities.
Regulation T/Regulation U
These are two Federal Board regulations controlling the amount of credit a broker or bank can extend to a client to buy securities.
Definition
Regulation T
The Federal Reserve Board regulation that determines the amount of credit that may be advanced by broker/dealers to customers for the purchase of securities.
RELATED TERMS ...
Regulation T (Reg T)
The SEC regulation that governs the lending of money by brokerages to its clients.
Reinvestment Opportunity
The opportunity to reinvest interest and principal paid by income securities.
Regulation T
The federal regulation governing the amount of credit that may be advanced by brokers and dealers to customers for the purchase of securities. (see Margin)
Regulation U ...
Regulation T - Reg T
The Federal Reserve Board regulation that governs customer cash accounts and the amount of credit that brokerage firms and dealers may extend to customers for the purchase of securities.
Reinvestment ...
Regulation T- This is the regulation done by a Federal Reserve Board to control customer cash accounts and the issuance of credit to customers by brokers to purchase securities.
Round Lot- This is 100 shares of stock.
Regulation T: The federal regulation governing extension of credit by broker/dealers to customers for trading securities. Regulation T mandates payment conditions and governs margin accounts.
Regulation T Calls
Federal Reserve Board Regulation T margin calls are issued when a customer makes a transaction in a margin account and does not meet the minimum initial requirement of 50% cash or loan available.
IRS regulation that gives a corporation with 35 or fewer shareholders the option of being taxed as a partnership to escape corporate income taxes.
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Regulation T (Reg T)
Federal Reserve Board regulation that governs the extension of credit to clients of broker-dealers.
Regulation T
Call Also called a Fed Call - This is the amount an investor must deposit if buying on margin or selling short, as required by the Federal Reserve Board's Regulation T.
A regulation that allows the parties of a premarital contract to choose the state's jurisdiction under which their contract will fall.
According to Regulation T of the Federal Reserve Board, you may borrow up to 50 percent of the purchase price of securities that can be purchased on margin. This is known as the "initial margin.
The main law or regulation that defines the function of a diversified investment company is known as the Investment Company of 1940.
[OTS] bank regulation The formulation and issuance by authorized agencies of specific rules or regulations, under governing law, for the conduct and structure of banking.
cash account A brokerage account in which the customer is required by Regulation T to pay... cash advance A loan taken out against a line of credit, credit card or expected income--typically... Cash Against Documents CAD.
Freeriding violates Regulation T of the Federal Reserve Board concerning the extension of credit by the broker-dealer (Wells Fargo Investments, LLC) to its customers. The penalty requires that the customer's account be frozen for 90 days.
A regulatory service provided by NASD Regulation to ensure that advertising and sales literature used by members conforms to NASDR and Securities and Exchange Commission standards of fairness and accuracy. affirmative obligations ...
NET CAPITAL RULE - An SEC regulation that requires broker-dealers to maintain "net capital" (net worth adjusted by certain deductions for illiquid assets and reserves against possible market losses on securities positions) such that the ...
The reserve requirement (or cash reserve ratio) is a central bank regulation that sets the minimum reserves each commercial bank must hold (rather than lend out) of customer deposits and notes.
The Uptick Rule is part of a financial regulation that was adopted by the U.S. Securities and Exchange commission (SEC) under the SEC Act of 1934. The rule is listed as rule 10a-1" in the regulations.
Consequently, such deposits are subject to much less regulation than similar deposits within the United States, allowing for higher margins.
Margin accounts are governed by Regulation T, the NASD, the NYSE, and the firm's house rules. Margin requirements can be met with cash or eligible securities.
Option margin
The margin requirement for options described in Regulation T and in brokers' individual policies.
Option mutual fund
A mutual fund that buys and sells options for aggressive or conservative investment.
Cash Account: An account in which the customer is required by the SEC's Regulation T to pay in full for securities purchased not later than two days after the standard payment period set by the NASD's Uniform Practice Code.
Regulation S-X
(USA) An SEC regulation that sets forth in detail the requirements as to the form and content of financial statements used in registration statements and periodic reports of public companies.
According to Regulation T of the Federal Reserve Board, the Initial Margin requirement for stocks is 50%, and the Maintenance Margin Requirement is 30%, while higher requirements for both might apply for certain securities.
An investor with $30,000 of unmargined securities has an excess initial margin of $15,000 (with Regulation T margin of 50%) and an excess maintenance margin of $22,500 (if the maintenance requirement is 25%).
Excess Equity
Equity in a margin account above the requirement set by Regulation T.
to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of the customer to ascertain the terms of and comply with any local law or regulation to ...
must borrow the security from his broker in order to make delivery to the buyer. The short seller will eventually have to buy the security back, or buy to cover, in order to return it to the broker. Short selling Is regulated by Regulation T of the ...
Because they are raising a limited amount of money these shares are sold for a very small amount per share. Also because these companies are raising a small amount of capital they are subject to a lot less regulation than companies that are raising ...
Margin calls occur on long positions when the value of held securities falls, and on short positions when the value of held securities rises. The maintenance margin is set by Regulation T which states that the margin account can have at most 50% of ...
 See also: Securities, Account, Market, Broker, Trading
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