margin regulations

margin regulations
USA
Regulation U (12 CFR 221) (REG U)
Regulation U. Also known as margin regulations.
The Federal Reserve Board regulation that governs loans made by banks for the purpose of buying securities. The regulation is intended to protect investors and limit speculative bubbles in the securities markets by limiting the amount of credit available to purchase securities. The importance to lenders is that it provides that no more than 50% of the value of the loan can be secured by publicly traded stock; loans made in violation of the regulation are void (Securities Exchange Act of 1934, Section 7).
The former Regulation G (which applied to non-bank, non-broker-dealer lenders in the US before 1998) was rolled into Regulation U.
For further information see Regulation U:

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • margin — The edge or border; the edge of a body of water where it meets the land. As applied to a boundary line of land, the margin of a river, creek, or other watercourse means the center of the stream. But in the case of a lake, bay, or natural pond,… …   Black's law dictionary

  • margin — The edge or border; the edge of a body of water where it meets the land. As applied to a boundary line of land, the margin of a river, creek, or other watercourse means the center of the stream. But in the case of a lake, bay, or natural pond,… …   Black's law dictionary

  • margin stock — A term defined by the Federal Reserve Board of Governors in Regulations T and U. Any stock listed on a national securities exchange, any over the counter security approved by the SEC for trading in the national market system, or any security… …   Financial and business terms

  • Equality Act (Sexual Orientation) Regulations — The Equality Act (Sexual Orientation) Regulations are secondary legislation in the United Kingdom, outlawing discrimination in the provision of goods, facilities, services, education and public functions on the grounds of sexual orientation.The… …   Wikipedia

  • Regulation U — / yü/ n: a regulation of the Board of Governors of the Federal Reserve System imposing credit restrictions on banks that extend credit for the purpose of buying or carrying margin stock if the credit is secured directly or indirectly by margin… …   Law dictionary

  • Regulation U (12 CFR 221) — USA Regulation U (12 CFR 221) (REG U) Regulation U. Also known as margin regulations. The Federal Reserve Board regulation that governs loans made by banks for the purpose of buying securities. The regulation is intended to protect investors and… …   Law dictionary

  • REG U — USA Regulation U (12 CFR 221) (REG U) Regulation U. Also known as margin regulations. The Federal Reserve Board regulation that governs loans made by banks for the purpose of buying securities. The regulation is intended to protect investors and… …   Law dictionary

  • Reg U — USA Regulation U (12 CFR 221) (REG U) Regulation U. Also known as margin regulations. The Federal Reserve Board regulation that governs loans made by banks for the purpose of buying securities. The regulation is intended to protect investors and… …   Law dictionary

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”