Margin Account (Stocks)

Financial Definition of Margin Account (Stocks)

Meaning of Margin Account (Stocks)

A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock and, if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated, but margin requirements and interest may vary among broker/dealers.

Related Entries of Margin Account (Stocks) in the Encyclopedia of Law Project

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Margin Account (Stocks) in Historical Law

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Legal Abbreviations and Acronyms

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