Buying on margin involves purchasing securities using credit from a broker, facilitated through a margin account, and is strictly regulated by the Federal Reserve Board (FRB).
A landmark federal legislation establishing rules of disclosure that lenders must observe in dealings with borrowers, ensuring transparent consumer lending practices.
Government economic policies designed to dampen the effects of the business cycle, such as the Federal Reserve Board's action during the early 1980s inflation to raise interest rates and reduce demand.
The Federal Reserve Board, often referred to simply as the Fed, is the governing body of the Federal Reserve System, the central bank of the United States. Its major responsibilities include overseeing monetary policy, regulating banks, maintaining financial stability, and providing financial services.
The Federal Reserve Board (FRB) is the governing body of the Federal Reserve System, responsible for setting key policies, including reserve requirements, bank regulations, and discount rates.
The Federal Reserve System (Fed) is the central banking system of the United States, created by the Federal Reserve Act of 1913. It regulates the nation's monetary policy, oversees the cost and supply of money, and supervises international banking through agreements with other central banks.
Monthly statistic released by the Federal Reserve Board (FRB) on the total output of all U.S. factories and mines. These numbers are a key economic indicator.
A margin account is a type of brokerage account that allows customers to borrow money from their broker to buy securities, following regulations from the Federal Reserve Board, the National Association of Securities Dealers (NASD), the New York Stock Exchange, and individual brokerage house rules.
Monetary reserve refers to a government’s stockpile of foreign currencies and precious metals used to support its currency. It is also the Federal Reserve Board's requirement for banks to keep a certain proportion of their deposits in cash or near-cash equivalents.
Regulation T is a regulation enforced by the Federal Reserve Board that sets the minimum amount of credit that securities brokers and dealers can extend to customers for the initial purchase of regulated securities.
Regulation Z is a body of regulations promulgated by the Federal Reserve Board pursuant to the federal Truth in Lending Act (TILA), ensuring that borrowers are informed of the terms of credit, including the Annual Percentage Rate (APR) and the total cost of credit.
Selective Credit Controls represent the ability of the Federal Reserve Board (FRB) to establish specific terms and conditions for various credit instruments, particularly affecting the trading of securities in the stock market through margin requirements.
