marginable stock

Definition

Stock approved by the Federal Reserve and an investor's broker as being suitable for providing collateral for margin debt. Depositing marginable stocks (or any other marginable securities) in a margin account is an effective way for an investor to reduce financing charges. However, the criteria to ensure that securities are suitable as collateral for margin debt can be quite strict. The Federal Reserve has a minimum set of standards for marginable stock, but a broker can choose to set stricter standards.

Use marginable stock in a sentence

You should try to find a good marginable stock that will allow you to earn some good profit from it.

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My stockbroker informed me that I could deposit either cash or marginable stock into my trading account as collateral if I wanted to trade stocks on margin.

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marginable stock Stock approved by the Federal Reserve and an investor's broker as being suitable for providing collateral for margin debt. Depositing marginable stocks (or any other marginable securities) in a margin account is an effective way for an investor to reduce financing charges. However, the criteria to ensure that securities are suitable as collateral for margin debt can be quite strict.

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