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Investments glossary

Regulation U


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All that is gold does not glitter not all those that wander are lost.

— J. R. R. Tolkien

Regulation U is a Federal Reserve Board regulation that governs loans by entities involving securities as collateral and the purchase of securities on margin. Regulation U limits the amount of leverage that can be extended for loans secured by securities for the purpose of buying more securities. Securities involved typically include stocks, mutual funds, and other market-traded securities.

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