Business / Taxes / Regulation T: Regulation T is the Federal Reserve Board rule that governs how much you can borrow through your margin account to cover the purchase price of a security. This initial margin is 50% of the total cost. The New York Stock Exchange (NYSE) and NASD additionally require your account to have a minimum margin of $2,000 or the full cost of the purchase, whichever is less, at the time you trade, plus a maintenance margin of at least 25% of the total market value of the securities in your account at all times. Individual broker-dealers may and often do require higher minimum and maintenance margins.
Regulation Verb Synonyms: rule, ruling, law, code, by-law or bye-law, edict, order, ordinance, statute, decree, directive, dictate
Regulation Noun Synonyms: adjustment, modification, modulation, control, balance, balancing, setting, fixing, organization, maintenance
Business / Finance / Grantor: A provision included in a new rule or regulation that exempts a business that is already conducting business in the area addressed by the regulation from penalty or restriction. MORE
Business / Finance / Option Margin: The margin requirement for options described in Regulation T and in brokers' individual policies. MORE
Business / Agriculture / General Agreement On Tariffs And Trade (GATT): An agreement originally negotiated in Geneva, Switzerland in 1947 to increase international trade by reducing tariffs and nontariff trade barriers. The agreement provides a code of conduct for interna MORE