The minimum percentage of the purchase price that a buyer must deposit with a broker. • The Federal Reserve Board establishes minimum margin requirements to prevent excessive speculation and price volatility. [Cases: Securities Regulation 45.11.]
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margin requirement. Securities. The percentage of the purchase price that a buyer must deposit with a broker to buy a security on margin. • This percentage of the purchase price is set and adjusted by the Federal Reserve Board. [Cases: Securities Regulation 45.11.] “Margin requirements are the statutory and administrative restrictions placed upon the percentage
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Regulation T. A Federal Reserve Board regulation that limits the amount of credit that a securities broker or dealer may extend to a customer, and that sets initial margin requirements and payment rules for securities transactions. • The credit limit and margin rules usu. require the customer to provide between 40 and 60% of the