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

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.


Value marginal product

Value marginal product

Marginal value product.


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.


Unmargined account

Unmargined account

A cash account held at a brokerage firm.


Buy on margin

Buy on margin

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


Further Suggestions

Effective margin (EM)
Marginal cost
Marginal utility
Marginal product
Marginal revenue product
gross margin
Marginal propensity to save
Marginal rate of transformation
Initial margin requirement
marginal tax rate
OTC margin stock
Maintenance margin
Marginal
Marginal efficiency of capital
Marginal value product
margin call
variation margin
Marginal tax rate
Original margin
Marginal propensity
operating margin
Margin requirement (options)
Gross profit margin
Profit margin
Dumping margin


 
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