Buy on margin


 

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Buy on margin

Borrowing to buy additional shares, using the shares themselves as collateral.



Buy on margin

Similar Matches

Unmargined account

Unmargined account

A cash account held at a brokerage firm.


Profit margin

Profit margin

Indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage. Also known as net profit margin.


Margin of safety

Margin of safety

The term given by Benjamin Graham, 'the father of value investing', to the idea that if you buy shares for less than two thirds of their net asset value, you automatically have a cushion against any deterioration in the company's trading position in the future. Put another way, 'buy cheap'.Graham's view was that it is extremely difficult to accurately predict a company's future earnings. For an investment to be 'safe', therefore, he liked to see a margin between the value of its net current assets and its share price. If the share price was below the net current assets divided by the number of shares in issue, he would consider buying it.One of the problems with Graham's approach is that in bull markets it is very difficult to find companies that fulfil his criteria. A second problem is that many of the fastest growing companies in modern economies are those whose assets are intangible - for instance, the value of their intellectual property. Under the Graham rubric, these sorts of assets would be excluded.


Marginal rate of transformation

Marginal rate of transformation

The increase in output of one good made possible by a one-unit decrease in the output of another, given the technology and factor endowments of a country; thus the absolute value of the slope of the transformation curve.


Margin security

Margin security

A security that may be bought or sold in a margin account as defined in Regulation T.


Further Suggestions

profit margin
operating margin
variation margin
Marginal revenue
Marginal efficiency of capital
Marginal propensity to import
Marginal
Margin of safety
OTC margin stock
margin account
Marginal tax rate
Marginal rate of substitution
marginal tax rate
initial margin
Original margin
Dumping margin
Margin account (stocks)
Marginal propensity to consume
Contribution margin
Marginal value product
Initial margin requirement
Initial margin
margin
Margin requirement (options)
Margin


 
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