Investor Glossary-margin accountInvestor Glossary-margin accountInvestor Glossary-margin accountInvestor Glossary-margin accountInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Margin Account

The HTML to link to this page
 

A margin account allows a trader or investor to buy stocks either with cash or with borrowed funds. Funds for a margin account are borrowed from the broker or brokerage firm handing the investor's transactions. When an investor purchases stock with funds from the margin account, the stocks purchased are the collateral for the loan. If the value of the stocks in a margin account drops sufficiently then the investor will have to sell shares or add more cash to the margin account in order to comply with the requirements of the margin account. While the percentage of stock that may be margined is federally established. additional requirements are set by the NYSE, NASD, and the broker's margin account agreement.



Rate this margin account definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use