adjusted debit balance

Adjusted debit balance (ADB)

The account balance for a margin account that is calculated by combining the balance owed to a broker with any outstanding balance in the special miscellaneous account, and any paper profits on short accounts.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Adjusted Debit Balance

The amount of money an investor owes on a margin account. This is calculated as the amount the investor directly owes his/her broker less the paper profit the investor has made on short sales and similar transactions on a special miscellaneous account. The adjusted debit balance is important to determining the amount owed in case of a margin call. According to Regulation T, an investor can only make a cash or securities withdrawal if the adjusted debit balance is small.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

adjusted debit balance

The amount owed a broker by a customer, adjusted by paper profits on short sales and balances in a special miscellaneous account. Adjusted debit balance is used to determine whether a customer is permitted to withdraw cash or securities from a margin account.

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.