Tearing down barriers erected after the 1929 stock market crash, the Federal Reserve Board Thursday made it significantly easier to borrow money to buy certain securities.

Effective April 1, banks may lend up to 100% of the purchase price of so-called "small cap" stocks listed by Nasdaq. The margin requirement in Regulation U had prevented buyers of many of these securities from borrowing more than half the purchase price from a bank.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.