Borrowing Power of Securities

Amount of money that customers can invest in securities on Margin as listed every month on their brokerage account statements. This margin limit usually equals 50% of the value of their stocks, 30% of the value of their bonds, and the full value of their Cash Equivalent assets, such as Money Market account funds. The term also refers to securities pledged (hypothecated) to a bank or other lender as loan Collateral. The loan value in this case depends on lender policy and type of security.

Amount of money that customers can invest in securities on Margin.