Rule 10b-16(redirected from Rule 10b16)
An SEC rule requiring brokerages to reveal to clients the terms and conditions under which margin accounts are set up before the customer may open a margin account. The rule also requires that the client receive quarterly updates on the status of his/her margin account.
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An SEC rule that sets minimum disclosure requirements for margin accounts that are opened by brokerage firms.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.