Regulation T - Reg T

What Does Regulation T - Reg T Mean?
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.

Investopedia explains Regulation T - Reg T
According to Regulation T, you may borrow up to 50% of the purchase price of securities that can be purchased on margin. This is known as the initial margin.

Related Terms

Federal Reserve Board - FRB
Initial Margin
Margin
Margin Account
Regulation Fair Disclosure - Reg FD
Regulation G
Regulation U
Regulation Z
More Related Terms

Related Links

The Federal Reserve - Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.
Margin Trading - Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky.
Why do you need a margin account to short sell stocks?
What are the minimum margin requirements for a short sale account?

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