Margin security

(redirected from Marginable Security)

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 ?
When an investor sells short against the box, he owns the security or a similar marginable security being sold short but elects to borrow the identical security from a third party rather than deliver the security he already owns (i.
It will also bring us closer to our goal of having a marginable security and qualifying for NASDAQ's NMS listing.