MARGIN LENDING Definition

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MARGIN LENDING, in securities, is where the lender, usually a bank, will lend you between approximately 40% and 70% of the value of approved shares and managed funds. For example, if you have $30,000 in cash, you could borrow up to $70,000 and buy a $100,000 portfolio (assuming a lending ratio of 70%). This portfolio then becomes the security for your margin lending facility.

Learn new Accounting Terms

PREFERENCE SHARE CAPITAL is capital raised by an entity through the sale of preferred shares.

GROSS REVENUE is income (at invoice values) received for goods and services over some given period of time. See also GROSS SALES.

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