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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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