Regulation T

Definition:

Federal Reserve Board regulation that deals with grantingcredit to customers by securities brokers, dealers, and exchange member as far as initial margin requirements and securities that are covered under the rules.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Greenshoe option

 Option that allows the underwriter for a new issue to increase the size of the issue because of high demand for the shares.

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