Investor Glossary-margin loanInvestor Glossary-margin loanInvestor Glossary-margin loanInvestor Glossary-margin loanInsightful 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 Loan

The HTML to link to this page
 

A margin loan is a loan made by a broker to an investor for the purpose of buying securities. The margin loan may be used for any purpose, but it is usually used to buy stocks, bonds, or other securities. A margin loan is secured by the client's collateral; this collateral is a portfolio of securities. A margin loan typically carries a margin rate (the interest charged on the loan) that is favorable due to the presence of collateral. A client uses a margin loan when he or she does not have enough money to buy securities or otherwise take advantage of a potentially profitable rise in securities prices. A margin loan is the central part of a margin account.



Rate this margin loan 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
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