Define: Margin Loan

Business, Legal & Accounting Glossary

Definition: Margin Loan



Advertisement



Full Definition of Margin Loan


A margin loan is a loan made by a broker to an investor for the purpose of buying securities. The margin loan may be used for any purpose, but it is usually used to buy stocks, bonds, or other securities. A margin loan is secured by the client’s collateral; this collateral is a portfolio of securities. A margin loan typically carries a margin rate (the interest charged on the loan) that is favourable due to the presence of collateral. A client uses a margin loan when he or she does not have enough money to buy securities or otherwise take advantage of a potentially profitable rise in securities prices. A margin loan is the central part of a margin account.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/margin-loan/
Modern Language Association (MLA):
Margin Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 06, 2020 https://payrollheaven.com/define/margin-loan/.
Chicago Manual of Style (CMS):
Margin Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/margin-loan/ (accessed: April 06, 2020).
American Psychological Association (APA):
Margin Loan. PayrollHeaven.com. Retrieved April 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/margin-loan/

Definition Sources


Definitions for Margin Loan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th February, 2020