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Free Credit Balance

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Free Credit Balance
The cash in a brokerage account to which the account holder may receive at any time or use to buy more securities. The free credit balance usually comes from dividends or coupon payments. The account holder may elect to receive the free credit balance each month or may direct the brokerage to make certain investments with it.

free credit balance
Cash held in a brokerage account that may be withdrawn or used to acquire additional securities. Free credit balances generally originate from dividends, interest payments, and security sales. Many firms automatically send balances to customers on the first day of each month. Investors may also request placement of the funds in a money market mutual fund. See also debit balance.


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90 Volume of trading (thousands of shares) 8 New York Stock Exchange 666,534 799,554 9 American Stock Exchange 28,870 32,629 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers(3) 140,980 228,530 Free credit balances at brokers(4) 11 Margin accounts(5) 40,250 55,130 12 Cash accounts 62,450 79,070 2000 Indicator 2000 July Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec.
Lehman has not relied on free credit balances for internal use.
34 Volume of trading (thousands of shares) 8 New York Stock Exchange 409,740 523,254 9 American Stock Exchange 22,567 24,390 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker--dealers(4) 97,400 126,090 Free credit balances at brokers(5) 11 Margin accounts(6) 22,540 31,410 12 Cash accounts 40,430 52,160 Margin requirements (percent of market values and effective date)(7) Mar.
 
 
 
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