margin department

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Margin department

The department in a brokerage firm that monitors customers' margin accounts, ensuring that all short sales, stock purchases, and other positions are covered by the margin account balance.

Margin Department

The department in a brokerage firm that deals with margin accounts. It monitors margin accounts opened by clients and ensures that they meet the minimum maintenance required by law and the brokerage itself. Additionally, the department makes margin calls and generally ensures smooth management of the margin accounts by the brokerage. It is also called the credit department.

margin department

The section of a brokerage firm's back office operation that is responsible for overseeing customer credit accounts. The margin department ensures that investors meet the margin standards determined by the Federal Reserve, the various exchanges, and the brokerage firm itself. Also called credit department.
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Credit departments are often tasked with account setup in enterprise computer systems.
Matthew also acts as outside general counsel to credit departments where he regularly assists in matters such as reviewing contracts, drafting contracts, negotiation and debt collection.
Grainger was one of the first companies to decentralize their credit departments. This reduces the amount of travel necessary for customer visits; it keeps their customers within driving distance of a credit manager.
Lovorn suggested that credit departments undergoing a merger or acquisition and switching to different software create a checklist containing tasks for each team member for each phase.
Some have distinct credit departments that report up the chain of command outside of the sales department, while other firms have their credit department contained within other departments, such as sales.
Fortunately, fewer CFOs, treasurers and other upper management officers view DSO as a sort of infallible and complete measurement of what's happening, notably in the credit departments collections prowess.
Most credit departments will face a change in their risk management system at least once every 10 years.
The role credit departments play in the world's economy came to the forefront following the credit crunch.
These include ensuring consistency, continuity and predictability within both sales and credit departments. Each credit policy will be unique, so it is critical for a credit manager to evaluate his or her company's individual requirements for the extension of credit.
In smaller and mid-market credit departments, there generally isn't a need for a fulltime credit analyst to write credit scorecards, determine accurate credit lines or properly analyze financial statements to alert management to high risk accounts.
"The sad part for many credit departments is their best performances often won't show up," he said.
It might disappoint some to learn that the discussion of how international credit departments measure their performance also frequently begins and ends with DSO.