Final answer:
Regulation T addresses initial margin requirements, loan value of securities, and mixed margin accounts, but it does not address maintenance margin, which is covered by FINRA Rule 4210.
Step-by-step explanation:
The student's question relates to Regulation T of the Federal Reserve Board, which governs the extension of credit by broker-dealers to clients for the purchase of securities. Regulation T sets forth the initial margin requirements, which is the amount of money or collateral that must be provided by a client when purchasing securities on margin. It also dictates the loan value of securities, which is how much credit the broker-dealer can extend based on the value of securities in a margin account.
Additionally, Regulation T provides guidelines for mixed margin accounts, which contain both fully paid and margin securities. However, Regulation T does not address the maintenance margin, which is the minimum amount of equity that must be maintained in a margin account after the purchase has been made. Maintenance margin requirements are set by Regulation T's industry cousin, the Financial Industry Regulatory Authority (FINRA), under Rule 4210.