Margin security

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Margin security

A security that may be bought or sold in a margin account as defined in Regulation T.

Margin Security

A security that one has purchased or sold on a margin account. A margin account is a brokerage account in which the brokerage lends the account holder money, which the account holder then uses to buy securities. Thus, a margin security is one that an investor buys with borrowed money. The fact that an investor is able to do this opens up investment opportunities that he/she might not otherwise be able to afford. More importantly, however, a margin security increases the possibility of a higher return and the risk of more losses. Margin securities are governed by Regulation T. See also: Margin call, Maintenance.
References in periodicals archive ?
It is obvious, that so far, especially after the mass transits of higher margin securities, the situation is such, that as long as easily be adjusted, rather than send the index up.
Original proposals to prohibit collateralized debt obligations and net interest margin securities were also included in the final rule.
The required consents for a given loan modification will be even more difficult to obtain if(I) a pool of mortgage securities includes interests in other pools of mortgage loans, (2) any homeowner has more than one mortgage loan (each loan is usually securitized separately and included in a separate pool), (3) any homeowner has private mortgage insurance, which is generally terminated by a loan modification, (4) any net interest margin securities with respect to any pool (representing the residual or "equity" interest in such pool) have been insured by an insurer, since such insurer must also generally consent to any amendment to the pooling and servicing agreement, and (5) any loan modifications are significant enough to jeopardize the tax-free REMIC status of the pool.
The proposal would also prohibit investments in collateralized debt obligations and net interest margin securities and would require that at least 90% of a corporate's investments be rated by at least two ratings organizations.