MARGIN ACCOUNT Definition

Bookmark and Share

MARGIN ACCOUNT (Stocks) is 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.

Learn new Accounting Terms

ARREARS is an unpaid overdue debt, or the state of being behind in payments, e.g. an account in arrears.

LEMON is a. an investment with a poor or negative rate of return or a purchase made where the product has continuing problems, e.g. a lemon of an automobile; or, b. an asset that is in continual need of repair, e.g. an automobile can be referred to as a lemon.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.