Margin security

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Margin security

A security that may be bought or sold in a margin account as defined in Regulation T.

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.
References in periodicals archive ?
Also included is the Board's list of foreign margin stocks.
The Federal Reserve Board on February 22, 1999, initiated semiannual publication of its List of Foreign Margin Stocks. The list, which was effective March 1 and supersedes the November 9, 1998, list, is the last to be accompanied by a press release.
Stocks on the list meet the Board's criteria in section 220.11 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. Other foreign stocks are also eligible if they are deemed by the Securities and Exchange Commission (SEC) to have a "ready market" for purposes of the SEC's net capital rule.
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.