4NASD Regulation also recently issued investor guidance on the use of margin accounts and the risks involved with trading securities on margin. Initial margin is the greater of the amount specified in Regulation T or the maintenance margin specified in Rule 2520. When calculating Regulation T margin, cross guarantees have no effect. Using the closing price, the daily relative return would be the percent price change between the most recent closing price and the previous day s closing price. Rule 10b-16 under the Securities Exchange Act of 1934.
Brokers also are subject to the general anti-fraud provisions of the federal securities laws.
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