Margin

 

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Margin

The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.

Margin

The difference between the cost price of a product and the selling price.In trading, the amount deposited with a broker in order to obtain credit for purchase of shares or futures. The margin is the price of a security less credit advanced by the broker.The difference between a market maker's buying and selling prices. Also known as spread.

Margin

Allows investors to buy securities by borrowing money from a broker. The margin is the difference between the market value of a stock and the loan a broker makes. Related: Security deposit (initial).



Margin

Similar Matches

Marginal propensity to import

Marginal propensity to import

The fraction of a change in income (or perhaps disposable income) spent on imports. Contrasts with average propensity to import.


Profit margin

Profit margin

The difference between what it costs to produce a product or service and the selling price.


Marginal tax rate

Marginal tax rate

The additional tax which someone pays on each 1 increase of his or her taxable income. In the UK the tax bands for 2003-2004 tax year are:10 per cent on the first slice of earnings22 per cent on next slice40 per cent on top sliceUnder the 'progressive' tax system, once someone's earnings take him into the top tax bracket, any extra earnings will be taxed at the top rate. So someone who is in the 40 per cent bracket has a marginal tax rate of 40 per cent.


Marginal revenue product

Marginal revenue product

The additional revenue generated by the extra output from employing one more unit of a factor of production. In a competitive industry this equals the marginal value product, but with imperfect competition it is smaller, due to the implied price reduction. Determines factor prices in competitive factor markets.


Margin account (stocks)

Margin account (stocks)

A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock; if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated, but margin requirements and interest may vary among broker/dealers.


Further Suggestions

OTC margin stock
Margin requirement (options)
Dumping margin
Unmargined account
variation margin
Gross profit margin
Marginal value product
margin call
gross margin
Margin trading
Initial margin
margin securities
Buy on margin
Maintenance margin
initial margin
margin account
Marginal propensity to consume
Margin requirement
Net profit margin
Margin of safety
Original margin
Marginal tax rate
Marginal cost
Operating profit margin
Marginal rate of substitution


 
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