Investor's equity

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Investor's equity

Investor's Equity

The balance of money or securities an investor keeps in a margin account in order to be able to borrow from a brokerage for short sales or other purposes. Investor's equity is kept as collateral until the brokerage calls the margin and the client pays back what is owed. FINRA requires that investor's equity must be at least 25% of the amount borrowed at all times, while some brokerages require equity of up to 50%. See also: Maintenance.
References in periodicals archive ?
Restrictions on foreign investors' equity holdings or investments in services are being sequentially eliminated.
Currencies such as Tether and TrueUSD are backed by fiat currencies to better manage the risk of high price volatility and preserve investors' equity on a best effort basis.
It took in more than $3.5 million but had a negative cash balance of about $2.4 million in 2008, "which resulted in a margin call that virtually wiped out the investors' equity," Galvin's office says.
FDI measures the value of foreign investors' equity and net loans to businesses in the country and thus constitute long-term or more durable investments, in contrast to portfolio investments, aptly called 'hot money', which are perceived to be short-term and more volatile.
Liberty's investors' equity funded the Sanjel purchase and committed nearly USD 100m of additional equity for future growth opportunities.
The foreign direct investment position in the United States--which comprises the direct investors' equity in, and net outstanding loans to, their U.S.
The company said the sale will generate gross proceeds of $114.8 million (including $2.1 million in dividends already received) "representing a gross $49.8 million capital gain, net IRR of 17 per cent and 1.7 multiple of our investors' equity investment."
This has slashed the value of investors' equity holdings.
(3) The position, or stock, is the net book value of foreign direct investors' equity in, and outstanding loans to, their affiliates in the United States.
'Average return on equity is one of the top financial performance benchmarks, measuring the rate of return that we achieve on our investors' equity. This ranking demonstrates First National's dedication to efficiently leveraging our shareholders' capital investment in our company,' said Kitty Payne, First National's executive vice president and CFO.
In short, companies are able to use private investors' equity as an "in-house" line of credit.
Investors' equity went up from JD45.6 million to JD66.9 million by December 31, 2005, and finally investors' revenues increased from 8 percent in 2004 to 23 percent in 2005.