InvestorWords.com

margin


Definitions (3)

1. Using money borrowed from a broker/dealer to purchase securities; here also called buying on margin.

2. The amount of equity required for an investment in securities purchased on credit.

3. The face value of a loan minus the value of the pledged collateral.

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Ben Graham's Meaning of Margin of SafetyYou have to have the knowledge to enable you to make a very general estimate about the value of the underlying business. But you do not cut it close. That is what Ben Graham meant by having a margin o ... Read more


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