Regulation U definition: Copy, customize, and use instantly
Introduction
The term "Regulation U" refers to a regulation enforced by the Federal Reserve that governs the use of credit to purchase or carry margin stock. It primarily applies to loans involving securities and sets limits on the amount of credit that can be extended in relation to the purchase or carrying of such securities. Regulation U plays a significant role in controlling the use of leverage in securities transactions, ensuring that borrowing for such transactions remains within safe bounds.
Below are various examples of how "Regulation U" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Regulation U" as federal regulation
This definition ties "Regulation U" to its role as a federal regulation.
"Regulation U" means the Federal Reserve regulation that restricts the amount of credit that can be extended for the purchase or carrying of margin stocks.
Definition of "Regulation U" as margin stock regulation
This definition connects "Regulation U" to its application in regulating margin stock.
"Regulation U" refers to the set of rules under the Federal Reserve that limits the amount of credit that can be used to purchase margin stocks, ensuring compliance with financial leverage standards.
Definition of "Regulation U" as financial credit rule
This definition links "Regulation U" to the broader concept of financial credit rules.
"Regulation U" means the regulation that imposes limits on loans used for buying or carrying margin securities, applying to both banks and individuals.
Definition of "Regulation U" as margin lending guideline
This definition applies "Regulation U" to its role in margin lending.
"Regulation U" refers to the guidelines established by the Federal Reserve that govern the extension of credit for margin lending, including requirements for maintaining sufficient collateral.
Definition of "Regulation U" as borrowing restriction
This definition ties "Regulation U" to borrowing restrictions on securities.
"Regulation U" means the regulation that imposes restrictions on the amount of credit a borrower can use to purchase securities, in order to reduce excessive leverage in financial markets.
Definition of "Regulation U" as credit provision standard
This definition connects "Regulation U" to the standard for providing credit.
"Regulation U" refers to the standard governing the provision of credit for margin transactions, ensuring that credit extensions for the purchase of securities comply with set limits.
Definition of "Regulation U" as securities loan regulation
This definition applies "Regulation U" to securities loans.
"Regulation U" means the regulation that controls the terms and limits of loans used to purchase or carry margin securities, enforcing compliance across financial institutions.
Definition of "Regulation U" as collateral requirement regulation
This definition links "Regulation U" to its collateral requirements.
"Regulation U" refers to the Federal Reserve’s regulation that dictates the required collateral for loans used to purchase margin stock, ensuring that borrowers do not overextend their financial obligations.
Definition of "Regulation U" as lending constraint rule
This definition connects "Regulation U" to its role in lending constraints.
"Regulation U" means the regulation that places a cap on the amount of credit that can be extended for the purpose of purchasing margin stock, with the goal of stabilizing financial markets.
Definition of "Regulation U" as credit limitation on securities purchases
This definition applies "Regulation U" to its limitation on credit used for securities purchases.
"Regulation U" refers to the limitation imposed on the amount of credit a borrower can use to buy securities, ensuring that such transactions remain within prudent financial practices.
Definition of "Regulation U" as reserve requirement for credit
This definition ties "Regulation U" to reserve requirements for loans.
"Regulation U" means the regulation that mandates a specific reserve for loans used to purchase securities, setting a limit on the proportion of credit that can be extended.
Definition of "Regulation U" as market stability regulation
This definition links "Regulation U" to its purpose in ensuring market stability.
"Regulation U" refers to the set of regulations aimed at ensuring financial market stability by restricting the amount of credit extended for purchasing margin stock, thereby preventing excessive leverage.
Definition of "Regulation U" as investment credit guideline
This definition applies "Regulation U" to investment credit limits.
"Regulation U" means the guidelines established by the Federal Reserve to limit the credit available for purchasing stocks or other investments on margin, to prevent speculative risk.
Definition of "Regulation U" as Federal Reserve credit control
This definition connects "Regulation U" to Federal Reserve’s control over credit.
"Regulation U" refers to the Federal Reserve regulation designed to limit the credit that can be extended for margin purchases, acting as a safeguard to control market risks.
Definition of "Regulation U" as borrowing threshold for securities
This definition ties "Regulation U" to borrowing thresholds for securities.
"Regulation U" means the regulation that sets the maximum borrowing threshold for the purchase of securities on margin, ensuring that excessive borrowing does not occur in the securities market.
Definition of "Regulation U" as compliance standard for financial institutions
This definition links "Regulation U" to financial institutions’ compliance.
"Regulation U" refers to the set of compliance standards that financial institutions must follow when providing loans for the purchase or carrying of securities, ensuring adherence to federal guidelines.
Definition of "Regulation U" as risk reduction measure
This definition applies "Regulation U" to risk reduction in financial markets.
"Regulation U" means the regulation that aims to reduce financial risk by placing limits on borrowing for the purchase of margin securities, thereby curbing potential leverage-related instability.
Definition of "Regulation U" as securities market safeguard
This definition connects "Regulation U" to its role in protecting securities markets.
"Regulation U" refers to the safeguards put in place by the Federal Reserve to prevent market disruptions caused by excessive credit extensions for margin stock purchases.
Definition of "Regulation U" as credit control
This definition ties "Regulation U" to its role in controlling credit in margin transactions.
"Regulation U" means the regulation that restricts the amount of credit that can be used to purchase or carry margin stock, serving as a control measure to prevent excessive borrowing in financial markets.
Definition of "Regulation U" as loan restriction
This definition connects "Regulation U" to its function as a restriction on loans.
"Regulation U" refers to the Federal Reserve’s regulation that sets a limit on the amount of credit that can be borrowed for purchasing margin securities, ensuring that the loan-to-value ratio does not exceed certain levels.
Definition of "Regulation U" as margin financing rule
This definition links "Regulation U" to the rules governing margin financing.
"Regulation U" means the rules under the Federal Reserve that govern the extension of credit for margin financing, ensuring that the credit extended is within safe limits to reduce financial instability.
Definition of "Regulation U" as borrowing guidelines
This definition applies "Regulation U" to borrowing guidelines for margin stock transactions.
"Regulation U" refers to the borrowing guidelines established by the Federal Reserve to prevent overleveraging in securities purchases, limiting the credit available for such transactions.
Definition of "Regulation U" as financial leverage regulation
This definition ties "Regulation U" to its role in regulating financial leverage.
"Regulation U" means the regulation that limits the amount of leverage an investor can use when borrowing funds to purchase securities, ensuring that credit extensions for margin stock purchases remain within safe thresholds.
Definition of "Regulation U" as securities trading credit rule
This definition connects "Regulation U" to the rules on credit used for securities trading.
"Regulation U" refers to the rules under the Federal Reserve that govern the use of credit for the purchase or carry of margin stock, ensuring that market participants do not overextend their borrowing capacity.
Definition of "Regulation U" as risk management tool
This definition applies "Regulation U" to its role in risk management.
"Regulation U" means the tool used by the Federal Reserve to mitigate risk in the securities market by limiting the amount of credit that can be used for margin transactions, thus curbing excessive leverage.
Definition of "Regulation U" as leverage control measure
This definition links "Regulation U" to its role in controlling leverage in the market.
"Regulation U" refers to the measure used to control the amount of leverage used in the purchase or carrying of margin stock, setting limits to protect market stability.
Definition of "Regulation U" as credit exposure limitation
This definition connects "Regulation U" to limiting credit exposure in financial transactions.
"Regulation U" means the regulation that limits the exposure of financial institutions to margin loans, restricting the amount of credit that can be extended for purchasing margin securities.
Definition of "Regulation U" as collateral standards
This definition applies "Regulation U" to the setting of collateral standards for margin loans.
"Regulation U" refers to the standards that define the collateral requirements for loans used to purchase or carry margin stock, ensuring that borrowing is proportionate to the value of the collateral.
Definition of "Regulation U" as market stabilization tool
This definition ties "Regulation U" to its use as a tool for stabilizing financial markets.
"Regulation U" means the regulation that serves as a stabilization tool for the securities market by controlling the amount of credit available for margin stock transactions, reducing systemic risk.
Definition of "Regulation U" as financial integrity safeguard
This definition links "Regulation U" to its role in safeguarding financial integrity.
"Regulation U" refers to the safeguard that protects the integrity of financial markets by limiting credit extension for the purpose of purchasing or carrying margin stock.
Definition of "Regulation U" as credit provision limit
This definition applies "Regulation U" to its limitation on the provision of credit for margin purchases.
"Regulation U" means the limit placed on the provision of credit to purchase or carry margin securities, designed to prevent excessive borrowing in securities markets.
Definition of "Regulation U" as credit risk control
This definition ties "Regulation U" to credit risk control in margin lending.
"Regulation U" refers to the control mechanism that limits the amount of credit extended to purchase or carry margin stock, minimizing the risk of overextension in the financial market.
Definition of "Regulation U" as financial lending restraint
This definition connects "Regulation U" to its function as a restraint on financial lending.
"Regulation U" means the restraint applied to the extension of credit for the purchase of margin stock, ensuring that lending remains within manageable and safe limits.
Definition of "Regulation U" as borrowing discipline
This definition applies "Regulation U" to promoting borrowing discipline in the securities market.
"Regulation U" refers to the regulatory framework that promotes borrowing discipline by limiting the amount of credit available for purchasing margin stocks, ensuring that investors do not take on excessive debt.
Definition of "Regulation U" as investment leverage rule
This definition ties "Regulation U" to rules governing investment leverage.
"Regulation U" means the rule that sets limits on the amount of leverage that investors can use to purchase securities on margin, mitigating the risk of over-leveraged positions.
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