: The portion of the securities' value that the investor actually owns (Total Market Value - Loan Balance).
Buying on margin is the practice of purchasing stocks by paying a small percentage of the price (a down payment) and borrowing the remaining balance from a broker. This strategy uses to increase buying power, allowing investors to control more shares than they could with cash alone. Key Concepts and Terminology
: A notification from a broker that the account value has fallen below the maintenance margin. Investors must then deposit more cash or sell assets to cover the shortfall.
: The portion of the securities' value that the investor actually owns (Total Market Value - Loan Balance).
Buying on margin is the practice of purchasing stocks by paying a small percentage of the price (a down payment) and borrowing the remaining balance from a broker. This strategy uses to increase buying power, allowing investors to control more shares than they could with cash alone. Key Concepts and Terminology
: A notification from a broker that the account value has fallen below the maintenance margin. Investors must then deposit more cash or sell assets to cover the shortfall.