loan value(redirected from Loan values)
The maximum percentage of the value of securities that a broker can lend to a margin account customer, as dictated by the Federal Reserve Board in Regulation T.
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The maximum amount an individual or company may borrow to buy securities on margin on a certain amount of collateral. The amount of a loan value is governed by Regulation T and by individual companies. See also: Maintenance Requirement.
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The maximum amount that may be borrowed, using a security as collateral. If the Federal Reserve specifies an initial margin requirement of 50% under Regulation T, $5,000 in securities would have a loan value of $2,500.
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.