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margin |
Also found in: Dictionary/thesaurus, Medical, Legal, Financial, Acronyms, Idioms, Wikipedia, Hutchinson | 0.06 sec. |
marginIn finance, the amount by which the value of collateral pledged as security for a loan exceeds the amount of the loan. This excess provides the lender a “margin” of safety over and above the collateral offered and thus makes extending a loan a more attractive proposition. The size of the margin varies with the type of collateral, the stability of its market price, and the credit standing of the borrower. The term margin is also used in reference to securities transactions. When securities are purchased “on margin,” the buyer supplies a percentage of the purchase price in cash, pledges the security as collateral, and borrows the remainder from the broker. The U.S. Federal Reserve Board (see Federal Reserve System) sets minimum margin requirements on loans made for the purpose of buying securities, so as to prevent excessive use of credit for speculation in stocks, as happened before the stock-market crash of 1929. margin 1. Commerce the profit on a transaction 2. Economics the minimum return below which an enterprise becomes unprofitable How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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That thoughtless deity immediately plunged into the pool, which became so salivated that the trees about its margin all came loose and dropped out. Beside the margin a derelict barrel would be turning over and over in the water; a switch of laburnum, with yellowing leaves, would go meandering through the reeds; and a belated gull would flutter up, dive again into the cold depths, rise once more, and disappear into the mist. It was growing late when Jamrach came to the margin of what appeared to be a lake of black ink, and there the road terminated. |
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