Margin stock includes any: Equity security listed on a national securities exchange. OTC security that has been designated as qualifying for trading in the National Market System under a plan approved by the SEC. A loan made to purchase margin stock, guaranteed by an individual who has pledged margin stock as security for the guarantee. The Federal Reserve Board has issued a staff opinion letter indicating that if the guarantee is collateralized by margin stock and the purpose of the loan is to purchase stock, then the loan is indirectly secured by margin stock. Margin stock is any equity security trading on a national securities exchange; any OTC security trading in the Nasdaq Stock Market's National Market; any debt security convertible into a margin stock or carrying a warrant or right to subscribe to or purchase a margin stock; any warrant or right to subscribe to or purchase a margin stock; or any security issued by an investment company registered under section 8 of the Investment Company Act of 1940 (with certain exceptions). DEFINITION of Carrying Broker. Carrying broker refers to a commodities or securities broking firm that provides back office functions. A carrying broker offers clearing, settlement and custodial services to other brokers.
Margin Treatment for Foreign Stocks Carried by a U.S. Broker. As a U.S. broker- dealer registered with the Securities & Exchange Commission (SEC) for the
To "carry" margin stock is to keep it in one's portfolio. Think of a retailer saying "we carry that item." It means it's in inventory. The expression is probably derived from the concept of a dealer or broker who carries an inventory of investments specifically for resale. A margin stock is a type of stock that must meet federal and stock exchange guidelines for margin trading. While margin stock Margin stock includes any: Equity security listed on a national securities exchange. OTC security that has been designated as qualifying for trading in the National Market System under a plan approved by the SEC. A loan made to purchase margin stock, guaranteed by an individual who has pledged margin stock as security for the guarantee. The Federal Reserve Board has issued a staff opinion letter indicating that if the guarantee is collateralized by margin stock and the purpose of the loan is to purchase stock, then the loan is indirectly secured by margin stock.
A margin balance occurs when the amount of a purchase or withdrawal is greater than the amount shown in your cash balance. Zero balance: A zero margin balance means that you either aren't borrowing any money from TD Ameritrade or that you hold a positive or zero cash balance.
29 May 2019 So, for example, a loan for the acquisition of margin stock, secured only that it is not in the business of buying or carrying margin stock, and/or Margin Treatment for Foreign Stocks Carried by a U.S. Broker. As a U.S. broker- dealer registered with the Securities & Exchange Commission (SEC) for the The Board will publish the List of OTC Margin Stocks on a new quarterly schedule. (4) Any debt security convertible into a margin stock or carrying a warrant or 27 Mar 2014 A Regulation U customer is any person (or persons acting jointly) who borrows money for the purpose of purchasing or carrying margin stock. 24 May 2019 Margin debt levels that are extremely high can be a systemic risk to the economy due to sliding stocks. This forces investors to sell shares in order
for the purpose of buying or carrying margin stock if the credit is secured di- rectly or indirectly by margin stock. Lenders include ''banks'' (as defined in. §221.2)
Margin stock includes any: Equity security listed on a national securities exchange. OTC security that has been designated as qualifying for trading in the National Market System under a plan approved by the SEC.
Margin Debt Scenario 1. The stock falls to $10 per share. The portfolio now has a market value of $13,320 ($10 per share x 1,332 shares), $10,000 of that is cash from the margin loan, $3,320, or 25% of the margin loan, is the investor's equity. This is a serious problem.
20 Sep 2019 The margin feature on your Schwab brokerage account allows you to access your available margin cash by placing a trade or withdrawing cash. repay margin debt that was used to purchase, trade or carry margin stock; or to make payments on any amounts owed under the note, loan agreement or loan