free credit balance(redirected from Free Credit Balances)
Free Credit Balance
The cash in a brokerage account to which the account holder may receive at any time or use to buy more securities. The free credit balance usually comes from dividends or coupon payments. The account holder may elect to receive the free credit balance each month or may direct the brokerage to make certain investments with it.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
free credit balance
Cash held in a brokerage account that may be withdrawn or used to acquire additional securities. Free credit balances generally originate from dividends, interest payments, and security sales. Many firms automatically send balances to customers on the first day of each month. Investors may also request placement of the funds in a money market mutual fund. See also debit balance.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.