| Margin Account |
 |
A
brokerage account in which the broker lends the customer cash to purchase
securities. The loan in the account is collateralized by the securities
and cash. If the value of the stock drops sufficiently the account
holder will be required to deposit more cash, or sell a portion of
the stock.
|
 |
This
is basically investing with your brokers money. Remember if you have
50% margin and the stock goes up you gain twice as much, but if the
stock tanks you lose big time! |
|
|
|
|
Dictionary
