WALL STREET REGULATIONS LIBERALISED
' v(Received 6, 8.45 a.m.) NEW YORK, Dec. 5. The Board of Governors of the Federal Reserve Board announces that less stringent margin requirements will be imposed in future Stock Exchange transactions, though no change is being made in the percentage of margin which an investor must deposit with his bioker. The alterations, wlxich are highly technical, may be described roughly as an attempt to discharge the splitting of accounts among several brokei's by permitting certain specified withdrawais from restricted accounts. Furthermore, a customer's deposits will be placed iu. a special 'uiscellaneoug account instetql pf a restricted amount. Note: Mr. Roosevelt, with a view to discouraging the frenzied speculation which led to the 1929 Wall $lreet crash, has in . recent years enforced strict regulations in all United States Stock Exchanges. With every buying order the investor must deposit 55 per cent. of the market value of the stock, as compared- with the 20-25 per cent. margin which can be obtained by credit-worthy investors in London. Competent market observers ascribe the recent weakness of the Wall Street Stock Exchange to the unduly high margin requirements, which have caused an extremely "thin" market, subject to wide fluctuations in any forced sellings.
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Hawke's Bay Herald-Tribune, Volume 81, Issue 62, 6 December 1937, Page 7
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202WALL STREET REGULATIONS LIBERALISED Hawke's Bay Herald-Tribune, Volume 81, Issue 62, 6 December 1937, Page 7
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