Purpose credit

Purpose credit

Credit used for the purpose of buying, carrying or trading in securities.

Purpose Credit

Money that an investor may borrow from a broker in order to buy securities. Purpose credit is secured by cash and/or securities in a margin account. An investor who buys with purpose credit can realize huge gains if the price of the security moves in a favorable direction; however, he/she also takes on a great deal of risk because it may not move in such a direction. Purpose credit is also called a margin loan. See also: minimum maintenance, margin call, nonpurpose loan.
References in periodicals archive ?
general purpose credit cards and co-branded credit cards, as well as market factor analysis and card program counts by operating network, issuer, and partnership segment.
CONSUMERS HAVE BECOME EXTREMELY CREDIT CONSCIOUS, steering away from the use of general purpose credit cards, according to a new report from Mercator Advisory Group, Boston.
Based on current spending data, it's clear that US consumers have become extremely credit conscious, steering away from the use of general purpose credit cards.
Analysis by credit reporting agency TransUnion found that use of general purpose credit cards bearing MasterCard or Visa logos, or issued by Discover or American Express, fell more than 11 per cent in the third quarter, compared with the July to September period last year.
Number of general purpose credit cards in circulation in the U.
In partnership with Detroit's OmniBank, one of the largest African American-owned banks in the nation, Mobil has created the Special Purpose Credit Program to provide $45 million in financing to minorities.
This study examines the demographic shift and changing landscape of credit card use, use of co-branded credit or charge card programs by type, shift of credit card use to other payment types, consumer experience of changing fees, APRs, balances and comfort with borrowing on their credit cards and motivators to increase borrowing and credit card spending, application channels used for general purpose credit cards and store credit cards and consumers notice of and reaction to merchant rules for credit card use and interest in mobile-based account controls.
A similar type of change in credit product that makes comparison across business cycles difficult has been the development and spread of general purpose credit cards for individual consumers during the past few decades.
General Purpose Credit Card Market, by Purchase Volume, Transaction Volume, Cards Issued, Accounts, Average Cards per Account, and Average Value per Transaction, 2003-2007 (in millions of dollars, except average values)
PayItSimple lets consumers simply and easily charge any purchase on their existing general purpose credit cards and pay them back in monthly, interest free installments.
Bank of America is one of the largest US banks and with the acquisition of MBNA in 2006 became the largest general purpose credit card issuer and servicer in the US.