active box
Active box
Securities that are held in safekeeping and are available as collateral for securing brokers' loans or customers' margin positions.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Active Box
Collateral used to secure funds borrowed on a margin account. A margin account allows an investor to buy securities with money borrowed from a broker; the funds are payable on demand of the broker. They also must be secured by an active box, which usually consists of securities owned by the borrower. The "box" refers to a safe where the stock and bond certificates are kept until the margin account is paid off. It is also called an open box.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
active box
See open box.
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.