Margin security

(redirected from Marginable Securities)

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 ?
Greene, however, says the loans are absolutely on the up-and-up, and that they're made more attractive by the fact that you can buy anything aside from other marginable securities -- such as stocks -- with them.
The effect of such a suspension could be offset by (1) allowing the exercise of options through the tender of stock already owned by directors or executive officers and through share withholding for applicable income tax withholding, or (2) directors or executive officers obtaining loans from their own broker (which may likely require a pledge of sufficient marginable securities to support the loan), using the proceeds from the loan to exercise the options and instructing the broker to sell shares to repay the loan.
After exercising the option, if the resulting new stock is marginable, its fair market value may be aggregated with the other marginable securities to reduce the overall margin percentage.