margin stock

Margin stock

Any stock listed on a national securities exchange, any over-the-counter security approved by the SEC for trading in the national market system, or appearing on the Board's list of over-the-counter margin stock and most mutual funds.

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.

margin stock

A stock with qualifications such that it is considered to have loan value in a margin account. This kind of stock usually includes all listed stocks and selected over-the-counter stocks meeting Federal Reserve criteria. Stocks not on the margin list must be paid for in full. Also called OTC margin stock.
References in periodicals archive ?
Margin stock buying in Japan falls for 3rd consecutive week
Margin stock buying in Japan rises for 1st time in 4 weeks
Margin stock buying in Japan up for 3rd consecutive week
Margin stock buying in Japan down for 1st time in 2 weeks
Margin stock buying falls on major Japanese exchanges
Also included is the Board's list of foreign margin stocks.
LIST OF MARGINABLE OTC STOCKS AND LIST OF FOREIGN MARGIN STOCKS AS OF MAY 11, 1998 The List of Marginable OTC Stocks and the List of Foreign Margin Stocks are published quarterly by the Board of Governors of the Federal Reserve System (the Board).
The Federal Reserve Board on February 22, 1999, initiated semiannual publication of its List of Foreign Margin Stocks.
11 of Regulation T (Credit by Brokers and Dealers) and are eligible for margin treatment at brokers and dealers on the same basis as domestic margin stocks.
The Federal Reserve Board published on January 25, 1991, a revised List of Marginable OTC Stocks for over-the-counter (OTC) stocks that are subject to its margin regulations and also the List of Foreign Margin Stocks for foreign equity securities that are subject to Regulation T (Credit by Brokers and Dealers).
The List of Foreign Margin Stocks indicates those foreign equity securities that are eligible for margin treatment at broker-dealers.