Buying On Margin The purchase of an asset by paying the margin - TopicsExpress



          

Buying On Margin The purchase of an asset by paying the margin and borrowing the balance from a bank or broker. Buying on margin refers to the initial or down payment made to the broker for the asset being purchased. The collateral for the funds being borrowed is the marginable securities in the investors account. Before buying on margin, an investor needs to open a margin account with the broker. In the U.S., the amount of margin that must be paid for a security is regulated by the Federal Reserve Board.
Posted on: Sun, 05 Oct 2014 21:08:52 +0000

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