Regulation T is primarily concerned with what aspect of financial transactions?

Regulation T primarily addresses the extension of credit by brokers and dealers to customers who are purchasing securities. This regulation is crucial because it establishes the framework for how broker-dealers can lend money to investors to finance the purchase of securities, commonly known as margin trading. Under Regulation T, specific requirements are set for initial margin requirements, which dictate how much investors must deposit in their accounts before they can borrow funds to purchase additional securities.

By focusing on credit by brokers and dealers, Regulation T ensures that both the lenders and borrowers understand their obligations and risks involved in margin transactions. This regulation plays a vital role in maintaining the integrity of the market and protecting investors by ensuring that they have adequate capital to support their investments. Thus, the emphasis on regulating the lending of credit for these transactions makes this aspect central to Regulation T.