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Introduction to Regulation T (Reg T) Regulation T (Reg T), enacted by the Board of Governors of the Federal Reserve System, sets rules for extensions of credit by brokers and dealers and regulates cash accounts. This regulatory framework governs buying securities with borrowed funds and establishes transaction rules for cash
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What Is Margin Debt? Margin debt refers to the loan obtained from a brokerage firm when an investor purchases securities with less capital than the total value of those securities. This borrowed capital, also known as margin debt or trading on margin, is used to augment an investor’s buying power,
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Introduction to House Calls In the realm of finance and investing, a house call is a term used to describe a specific situation that arises when the value of investments in a margin account falls below the maintenance margin required by a brokerage firm. This margin requirement ensures investors maintain
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What Is a Debit Balance? A debit balance is the amount owed by an investor in a margin account to their broker or other financial institution for borrowed funds used to purchase securities. In simpler terms, it’s the difference between the total value of assets in the account and the
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