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What is a margin account?
A " Margin Account" is a type brokerage account in which the broker-dealer lends the investor cash, using the account as collateral, to purchase
What is a debit adjustment?
The amount in a margin account that is owed to the broker, minus profits on short sales and balances in a special miscellaneous account (SMA). The adjusted debit balance aids an investor in knowing how much he/she owes in the event of a margin call. Under Regulation T, one can borrow up to 50% of the purchase price of securities on margin.
What is meant by a EBITDA margin?
A EBITDA margin is a way for companies to measure their profitability. This margin is equal to their earnings before interest, depreciation, tax, and amortization divided by the total revenue of the company. It is important to note that an EBITDA margin doesn't take into amortization and depreciation and therefore an investor who is interested in the company is able have a cleaner view of the main profits of the company (profits that are not influenced by depreciation and amortization). Essentially, the higher a EBITDA margin is, the less operating costs the company must pay, and therefore more overall profitability in its operation.
What is a creative margin?
A margin that is creative.
What is the difference between Contribution Margin per unit and contribution margin ratio?
Contribution margin ratio is overall total contribution margin while contribution margin ration per unit is the allocation of total production contribution margin to per unit basis.
The situation in which an investor is asked to put more money to cover his or her loan on stock?
margin call
What is Call Money market and explain its nature?
The call money market is a system in which dealers and brokers borrow money to finance their investments on a very short-term basis. The source of the funds, usually a bank, can request return of the money at any time. This makes "call money" a risky transaction. The money procured is either used to purchase securities for the portfolio of the firm, or to cover an investor's margin account. When a stockbroker lends money to an investor to purchase shares in a company the money is placed in what is called a margin account. When the value of the shares go down, the investor must cover the "margin," or the amount of value the shares lost. If the value of the shares go up, then the investor makes a profit.
What is a margin account?
A " Margin Account" is a type brokerage account in which the broker-dealer lends the investor cash, using the account as collateral, to purchase
What is the process where an investor borrows a percentage of the purchase price of stocks from the brokerage firm?
margin
How did buying on margin work?
Buying on margin allowed investors to borrow money from their broker to purchase stocks. This meant they only had to provide a percentage of the total cost of the stock as collateral, while the broker would lend them the rest. The investor would then pay interest on the borrowed amount. If the stock price increased, the investor could sell the stock and repay the loan with the profits. However, if the stock price decreased, the broker could issue a margin call, requiring the investor to deposit more funds to cover the loss.
When was Margin Call released?
Margin Call was released on 10/21/2011.
What is the difference between buying on margin and margin call?
Buying on margin, taking a "margin" loan from the broker to help buy part of a stock purchaseMargin call, this happens when the broker demands full payment of your "margin" loan
What is debit adjustment?
The amount in a margin account that is owed to the broker, minus profits on short sales and balances in a special miscellaneous account (SMA). The adjusted debit balance aids an investor in knowing how much he/she owes in the event of a margin call. Under Regulation T, one can borrow up to 50% of the purchase price of securities on margin.
What is a debit adjustment?
The amount in a margin account that is owed to the broker, minus profits on short sales and balances in a special miscellaneous account (SMA). The adjusted debit balance aids an investor in knowing how much he/she owes in the event of a margin call. Under Regulation T, one can borrow up to 50% of the purchase price of securities on margin.
What is wrong with buying stock on margin?
There is nothing wrong in buying stocks on margin. What the investor must recognize is that there is more risk involved. Aside from the purchased stocks going down, the added burden is having to pay interest on the borrowed funds or the "margin". The other danger is that an investor using margin can buy more stocks. Over speculation can either vastly be beneficial or be a personal income disaster.
Buying on margin involves what?
traders borrowing money from their brokerstraders borrowing money from their brokers
When an investor borrows money and invests the borrowed funds along with his or her own funds in securities?
buying on a margin
