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Related to call loan: Call loan rate
A loan repayable on demand. Sometimes used as a synonym for broker loan or broker overnight loan.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A loan that must be paid on demand from the lender. Demand loans are often used to fund margin accounts; alternatively, they are common for personal loans with no set maturity. Demand loans often require collateral and are also called call loans. See also: Margin call.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A loan that may be terminated at any time by either party. For investors, a call loan means bank loans to stockbrokers for the purpose of carrying customer margin borrowing, using securities as collateral. The rate of interest, similar to that on other high-quality short-term loans, varies over time. Brokerage firms usually charge customers the rate on call loans plus an additional 1% or so depending on the amount borrowed. Also called broker call loan. See also broker's loan.
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.