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Technically, nonprofits do not generate a profit, rather a "surplus," i.e., any revenues brought in beyond what is required to meet costs. This surplus, by law governing the nonprofit status, must be "re-invested" into the nonprofit for purposes of furthering the nonprofit's mission and goals. This contrasts with for profit enterprises whose profits may be re-invested but can also be distributed to investors or shareholders (for publically traded companies). There is no limit to the surplus a nonprofit may generate and reinvest into its mission.

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Q: What profit margin is allowed for a nonprofit organization before it loses its status?
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How did buying on margin help reinforce the bull?

It allowed more people to invest in the Stock Market.


How did buying on margin reinforce the bull market?

It allowed more people to invest in the Stock Market.


How did buying on margin help reinforce help the bull market?

It allowed more people to invest in the Stock Market.


Can you have margin on an IRA account?

According to IRA regulations, if any part of an IRA is used as collateral, the entire IRA is considered to be distributed. Distribution of such accounts are subject to income taxes and an additional penalties. This is important because margin accounts require that you pledge your account as collateral. Your attempt to convert an IRA account into a margin account will nullify it's "qualified" status. It is for this reason that investment firms will not provide margin for a retirement account. Also, you are not allowed to have/keep a debit balance in a IRA account ***Revision Updated as Feb. 5, 2011 Select few brokerages will grant margin on IRA accounts. However, the margin capability will not be allowed leverage. The alternative purpose for seeking margin account is to avoid the settlement period (3 days, in which, the proceeds and principal cannot be used). Interactive Brokers and TD Ameritrade allow margining IRAs for settlement avoidances, only. This service has been approved be the Securities Exchange Commission. Bottom line: YES, you can margin an IRA account. NOT, for leveraging purposes.


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

Related questions

Is a 3 percent operating margin good for a nonprofit?

on u


How did buying on margin help reinforce the bull?

It allowed more people to invest in the Stock Market.


How did buying on margin reinforce the bull market?

It allowed more people to invest in the Stock Market.


How did buying on margin help reinforce help the bull market?

It allowed more people to invest in the Stock Market.


What is net profit margin?

Net Profit margin is an indicator of the profitability of an organization. This refers to the actual amount of profit the company makes after deducting taxes and operating expenses. All company's strive to attain a good or rather high net profit margin. A net profit margin is also an indicator of the ability of the organization to control cost and also a good pricing strategy.Formula:Net Profit Margin = (Net Profit (After Taxes)/ Revenue) * 100%Note: It is easy to confuse gross profit margin and net profit margin. Gross profit is the amount of money left after paying for the operating expenditure. Net profit is the amount of money left after paying for operating expenses as well as government taxes. This is the actual amount of profit that goes into your pocket.


What is the definition of a CSS margin?

A CSS margin is just a spacing allowed on a web page. Much like a margin on a piece of paper it holds a space for measurements and leaves the empty space to define the page. Though there can be text in the margins many developers place menu links in them.


What is it called when Sales can decline before losses are incurred?

margin of safety


If non-traceable costs are not allocated to the various operating units within an organization who ends up paying these costs?

The organization would end up incurring the costs unless that organization has an allocated percentage within their contribution margin to cover such costs.


What is a margin in commodities trading?

A margin in commodities trading, is the amount of money you have to deposit in your brokerage account before trading a futures contract. The margin amount varies on each commodity and fluctuates with the volatility of the markets. There is an initial margin amount required when entering a contract and "maintenance" margin amount that must be kept in the account at all times during the contract holding period, which is typically lower than the initial margin. The balance of your account will fluctuate with gains and losses on the contract and if the balance falls below the "maintenance margin" amount, you get a "margin call", which means you must deposit enough money to meet the margin or close your contract. If you don't do either of these options, the broker will close the position before the balance falls to zero.


How did buying on margin allow more people to invest in the stock market?

Buying on margin allowed more people to invest in the stock market by enabling them to borrow money to purchase stocks. With a margin account, investors could put down only a fraction of the total cost of the shares they wanted to buy, typically around 10%, and borrow the rest from a broker. This allowed individuals with limited capital to have greater purchasing power and participate in the stock market.


What formula would you use to calculate the net profit margin?

You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin


What is screen based trading and margin trading in stock exchange?

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