BUYING ON MARGIN
Purchasing asset by paying the margin and funding the balance through a loan from a bank or broker. It is the down payment made to the broker for the asset being acquired. The marginable securities in the investor’s account act as the collateral for the borrowed funds. Before doing so, one has to open a margin account with the broker. In the United States, the amount of margin must be paid for a security regulated by the Federal Reserve Board.
POPULAR TERMS
Accumulation Area
A price where the investors purchase shares of a particular stock. It is usually determined by the looks of the volume and its price. Some analysts ...
SEC Form DEF13E3
SEC Form DEF13E3 is a form which is used as an initial preliminary statement for a company or affiliate that is turning private. “Going priva ...
Transaction
1. Deal between a buyer and a seller to exchange a product, service, or financial instrument.
2. In accounting, an event or condition aff ...
IRS Publication 596
A document that gives information on the earned income credit (EIC) offered to individuals who earn below $51,567. To be eligible to receive EIC, a ...
Depository Trust Company Tracking - DTCT
A service, used by underwriting firms, that provides a method of tracking the exact path of purchases and sales of newly issued securities.
POPULAR ARTICLE
SEE FOREX TUTORIAL
Connection of Inflation and Interest Rates
We cannot simply ignore the connectivity of inflation and interest rates. Both items are interrelated. So, whenever there is a news item about a co ...
A Primer on Retirement Planning
Every person dreams of enjoying their lives once they reach their golden years. Most people desire living in a house with a beach front view or a m ...
A Guide to Your Personal Income Tax: Common Filing Mistakes
Failure to file the return on time is the most common mistake committed by taxpayers. Here are some of the other mistakes, which can cost you a lot ...
Students, How Much Can You Afford to Borrow?
You are about to finish high school. The financial aid office of the university you are considering gave you a financial aid. You are also qualifie ...
Macroeconomics: Basic Concepts
The concepts involved in macroeconomics focus on three fields, including national output and income, unemployment, and inflation and deflation. The ...
