Legal Definition of Brokers’ Loans
Meaning of Brokers’ Loans
Money borrowed by brokers from banks or other brokers for a variety of uses. It may be used by specialists to help finance inventories of stock they deal in; by brokerage firms to finance the underwriting of new issues of corporate and municipal securities; to help finance a firm’s own investments; and to help finance the purchase of securities for customers who prefer to use the broker’s credit when they buy securities. (See: Margin)
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Brokers’ Loans in Historical Law
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