Definition 1
To increase the number of or severity of regulations for an industry. For example, a shift in public sentiment toward environmental issues might cause a government to tighten regulations concerning the amount of pollutants an industry is able to produce during manufacturing.

Definition 2
To contract or restrict the terms in which an investor or company is willing to operate under. For example, a company may tighten or reduce the amount of credit it makes available to suppliers.

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