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.
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.
