Regulation T
- A rule established by the Board of Governors of the Federal Reserve System that stipulates how credit should be extended by securities brokers and dealers, along with prescribing initial margin requirements and payment guidelines for securities transactions
- Under Regulation T, the broker was required to provide an initial margin for his securities transactions.
- Due to the stipulations of Regulation T, the dealer had to follow certain payment rules when extending credit.
- The securities firm extended credit in line with the requirements outlined in Regulation T.
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