GLOSSARY · INVESTING
Margin loan
A loan from a broker secured by the investments in your account. Federal rules generally let you borrow up to half the price of most stocks, and FINRA requires the equity in the account to stay at no less than 25% of its value, with most brokers setting a higher level. If the account falls below that level the broker can demand more money or sell holdings without notice.
Also called: buying on margin, margin call, margin account
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CHAPTER · DEBT ELIMINATION STRATEGIES · STRATEGIESBorrowing to Invest: Margin, Rental Property and Business LoansRELATED TERMS
SOURCES
- Rule 4210, Margin Requirements. Financial Industry Regulatory Authority (FINRA).