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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 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.
How do you calculate the average contribution margin?
Formula for calculating average Contribution margin Average contribution margin = total contribution margin / total number of units
What is the impact of low profit margin on a company?
Means no expansion or further investment for the company because no cash is there, one more impact is the reputation of the company which could lead to decrease of the share price
What is the definition of the buying power of money?
"The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "excess equity." For example, if you have $1,000 cash in a margin account and the maximum margin rate is 50%, then your total buying power is $2,000. For a non-margin account, the buying power is equal to the amount of cash in the account." From Investopedia.com
What is a bank guarantee with cash margin?
A bank guarantee is given to the customer to perform specific actions of a contract. When there is a cash margin involved, the money will be returned to the customer once the original bank guarantee is completed.
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
Which of these reason was most likely the single cause of the stoc market cash?
Margin requirement
What are the different kinds of brokerage account types asked by Bradley Associates Spain?
Yes, actually brokerage houses offer clients a number of different accounts. The most common ones are a cash account, a margin account (cash and margin account), and an option account (cash, margin, and option account). Basically, these accounts represent different levels of credit and trustworthiness of the account holder as evaluated by the brokerage house.
How did the practices of buys on margin and speculation cause the stock market to rise?
Buying on margin allows people to leverage their cash to 2X the size, with a loan from their broker. Investors use margin to trade bigger positions, without having the money for those trades in hand. So margin allows for more money to flow into the stock market, causing individual stocks to rise. But in order to trade with margin, you have to maintain a certain amount of leverage (cash) in your account. If a stock price falls, a broker may require you to put more cash in your account...if you don't have it, your stocks are sold. What is happening is that many investors can't come up with the cash and their stocks are sold automatically so the value of the initial loan is preserved. The avalanche starts as more and more investors are forced to sell when they don't have cash available.
How did buying on margin allow more people to invest in market?
Buying on margin allow people to buy more stocks with only a fraction of the cash needed to buy those stocks. These allowed more people to invest in the stock market that would not afford to come up with the full cash to buy the stocks in question.
Can you sue a broker for buying stocks on margin when not authorized to do so?
when you opened the account you probably opened with margin. If you bought more stock than you had cash for and were leveraged against your will and had to sell out or got a margin call you can go to arbitration. You waived your right to sue wen you opened the account, you have to go arbitration which can work out better for you.
What is meant by the terms margin and turnover in ROI calculations?
Margin and turnover in ROI calculations: Margin: In ROI calculation margin is the ratio of net operating income to total sales. Turnover: In ROI calculation turnover means the ratio of total sales to average operating assets. Operating assets include cash, A/R, inventory, PP&E, and so on. Land held for future use, leases, and investments do not count.
What is the continental margin margin?
the margin of the continental
How did speculation make the stock market climb?
Companies offered shares of their stock for sale to the public to generate capital. The public in pre-1929 era bought stock. When buying stocks on margin, one could buy stocks without the money to purchase them and demand led to high prices.
If a low profit margin company experiences significantly higher sales next year after which sales stabilize at the new level what will happen to cash flow?
Cash flow should increase provided that expenses remain the same or change only slightly.
