While state restrictions may apply,there are no federal restrictions on lenders and borrowers entering into transactions whereby secured credit will be sued to acquire stock.

Question

Quizplus · Accepted Answer

Federal regulations, such as Regulation U under the Securities Exchange Act of 1934, impose restrictions on the amount of credit that can be extended for the purpose of buying or carrying margin stock, including requirements for collateral (i.e., the stock itself).

While State Restrictions May Apply,there Are No Federal Restrictions on Lenders