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Simple English definitions for legal terms

Regulation T

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A quick definition of Regulation T:

Regulation T: A rule made by the Federal Reserve Board that controls how much money a securities broker or dealer can lend to a customer. It also sets the amount of money the customer must pay upfront when buying securities. Usually, the customer has to pay between 40% and 60% of the total cost of the securities.

A more thorough explanation:

Definition: Regulation T is a rule created by the Federal Reserve Board that limits the amount of money a securities broker or dealer can lend to a customer. It also sets the initial margin requirements and payment rules for securities transactions. This means that customers must provide a certain percentage of the purchase price, usually between 40% and 60%, to complete the transaction.

Example: Let's say you want to buy $10,000 worth of stock. With Regulation T, your broker can only lend you a certain amount of money to make the purchase. If the margin requirement is 50%, you would need to provide $5,000 of your own money and your broker could lend you the other $5,000. This helps prevent customers from taking on too much debt and protects the financial system from potential risks.

Explanation: Regulation T is designed to prevent excessive borrowing and promote responsible investing. By limiting the amount of credit that brokers can extend to customers, it helps ensure that investors have enough skin in the game to make informed decisions and manage their risks. This also helps prevent market volatility and systemic risks that could harm the economy as a whole.

Regulation Q | Regulation U

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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