adjusted debit balance(redirected from Adjusted Debit Balances)
Adjusted debit balance (ADB)
Adjusted Debit Balance
The amount of money an investor owes on a margin account. This is calculated as the amount the investor directly owes his/her broker less the paper profit the investor has made on short sales and similar transactions on a special miscellaneous account. The adjusted debit balance is important to determining the amount owed in case of a margin call. According to Regulation T, an investor can only make a cash or securities withdrawal if the adjusted debit balance is small.
adjusted debit balance
The amount owed a broker by a customer, adjusted by paper profits on short sales and balances in a special miscellaneous account. Adjusted debit balance is used to determine whether a customer is permitted to withdraw cash or securities from a margin account.