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margin |
Also found in: Dictionary/thesaurus, Medical, Legal, Financial, Wikipedia, Hutchinson | 0.07 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 |
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Since the funds to exercise the options and pay the taxes due were provided by margining the stock in Brokerage House Corp. NEW YORK -- Two developing Security and Exchange Commission (SEC) initiatives - an initiative within agency lending and a portfolio margining initiative - will have a major impact on those involved in the securities and commodities industry, according to Grant Thornton LLP's most recent edition of SecuritiesAdviser, a quarterly newsletter that covers trends in the securities and commodities industry. Margin Advisor is an intraday margining solution that monitors margin activity and position price changes in real-time, helping financial institutions to enhance service to customers and reduce risk. |
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