Minimum initial deposit of P200,000 is required to open a margin account
Payments in lieu of dividends: C's margin account
with D Brokers holds 500 shares of E Bank Inc., her only investment.
But if a company has a lower cost of capital and higher access to liquidity--a large line of credit, say--it might decide it's worthwhile to tie up tens of millions, even hundreds of millions, of dollars in a margin account
to save money on its hedging costs.
Commenting on this accreditation Mohamed Al Nuaimi, CEO, Mawarid Finance and Chairman of Al Jazeera Financial Services said, "we are delighted to be one of the few local companies which provide margin trading facility, this shall enhance the company operations and offer added value to its customers who shall be able to take finance for trading under the margin account
and hence shall increase their trading volumes and profits.
Following a margin call, there are three possible situations: (1) the CM does provide the requested funds on time, (2) it does not provide the requested funds on time but the balance on the margin account
remains positive, or (3) it does not provide the requested funds on time and the balance on the margin account
the risk that a client fails to settle payment against a transaction undertaken the brokerage house on its behalf, on the backing of a margin account
INITIAL MARGINIt is the minimum amount that a participant must deposit in the margin account
before initiating trade in the futures market.
liquidate the margin account
. By contrast, collateral arrangements
Under the proposed rulemaking released on July 18, 2006, these provisions extend to any "account" defined by "an extension of credit for personal, family, household or business purposes such as a credit card account, margin account
or retail sales installment contract."
A separate margin account
is required and settlement on this account will be made on a daily basis as described above.
An alternative type of account is called a margin account
. A margin account
means that money is borrowed from the brokerage firm to buy the securities.
Lorna Moran, chief executive of Northern Recruitment Group, which today unveiled its annual financial figures, said: "The closure of the Samsung plant on Teesside in April 2004 resulted in the loss of a high turnover, low margin account
which is likely to impact on our temporary revenues, but not profits, in the current year."
The fungible, dividend-paying "down" security functions like a short futures position or a long put with an over-funded margin account
that obviates margin calls.
stock $91,000 $84,000 Margin balance (liability] (9,400) (4,500) Owner's equity $81,600 $79,500 Activity in margin account
for January 2002 Beginning balance, margin liability $4,500 Dividends received (140) Margin interest charged 40 Funds withdrawn 5,000 Ending balance, margin liability $9,400 EXHIBIT 2 INCOME STATEMENT FOR JANUARY 2002 Unrealized holding gain $7,000 Dividend income 140 Margin interest expense (40) Comprehensive portfolio income $7,100 EXHIBIT 3 ACCOUNT ACTIVITY EQUATION AND ANALYSIS OF OWNER'S EQUITY FOR JANUARY 2002 Beginning Ending balance + Inputs Outputs = balance $79,500 + ?