margin exercise

margin exercise

The use of a margin loan to pay for exercising an incentive stock option. The amount of the loan is limited to 50% of the market value of the stock.
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.