restricted account

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Restricted account

A margin account without enough equity to meet the initial margin requirement that is restricted from any purchases until the requirement is fulfilled.

Restricted Account

A margin account in which the amount of equity is below SEC or brokerage requirements. Such an account is not allowed to buy any more stocks until the level of equity is raised; a portion each sale of stock must be used to pay down the account's debt. Regulation T sets the minimum equity standards, but individual brokerages may set higher standards. In general, however, an account becomes restricted when the market value of the stocks purchased on margin falls below the amount owed on the stocks. A restricted account is sometimes referred to as a blocked account.

restricted account

A margin account in which the customer cannot purchase any additional stock on margin without putting up more equity. An account is restricted when its debit balance is greater than the loan value of the securities within the account. Also called blocked account.
References in periodicals archive ?
5 billion a month accumulating in restricted accounts, some $15 billion of the $38 billion surplus may be out of reach.
Usually the malicious code is run remotely and is used to elevate the privilege of restricted accounts on the computer, allowing hackers to gain access to a computer and read sensitive information from the computer's hard disk drive or to install malware, such as a worm or a key logging program.
Restricted accounts, which should have been the mainstay of Islamic banks, are reserved only for the more sophisticated investment accountholders.
In two more of at least four similar cases, former Ernst & Young consulting partners were denied refunds of tax they paid on stock received from a merger with Cap Gemini that lost most of its value while in restricted accounts.
The statewide program, funded through Tobacco Master Settlement Agreement (MSA) and Cigarette Tax Restricted Accounts, has also netted significant results in youth smoking cessation and reducing exposure to secondhand smoke.
Although city officials objected in some cases to the findings, the City Council agreed to transfer money from its general fund and several other restricted accounts into the gas tax fund.
7 million of cash in securitization and restricted accounts, which may be deployed for suitable new investment opportunities and distributions of dividends.
Private insurers would hold regulated dollar amounts in restricted accounts before they are needed.
0 million of cash in securitization and restricted accounts which may be deployed for suitable new investment opportunities.
NASD Regulation found that from January 1996 through October 1996, Lehman Brothers sold over 1 million shares, worth over $16 million, to restricted persons or to conditionally restricted accounts, without making an appropriate inquiry about the customers or documenting in writing the permissibility of the sales.
2 million of cash released from our restricted accounts pursuant to the terms of the indenture governing our 12% Senior Notes.
Though liquidity is modest based on unrestricted cash being only 27 days' worth of operating expenses in fiscal 1998, comfort is gained from the system having over $11 million cash in its restricted accounts at fiscal 1998 year end.